Feeds

Google shares tank after disappointing financial report

'Only' 25 per cent revenue growth for quarter

High performance access to file storage

Google’s share price fell sharply after the company released results that underperformed market expectations, with after-hours trading seeing the stock price fall by nearly ten per cent.

Quarterly revenues broke the $10bn mark for the first time – at $10.58bn they were up 25 per cent on the last quarter of 2011 – but this was still below analyst’s estimates. Earnings-per-share was $9.50, about a dollar short of where Google had been hoped to be.

What’s particularly worrying Wall Street is Google’s continuing reliance on advertising for the vast bulk of its revenue, coupled with a steady drop in the cost-per-click price – the amount Google charges advertisers. This fell 8 per cent in the last quarter, on top of an 8 per cent drop the previous quarter. Annual costs were also a couple of percentage points higher.

“I’m very happy with our results,” Larry Page assured analysts during the earnings call. “We’ve got improved velocity and blew through the $10bn mark.”

Overall, the company was satisfied with the current financials, he said, and they provided a strong platform going forward. That said, he warned that the culling of projects at Google would continue, allowing it to “double down” on sections of the business that showed most promise, such as Google+, Chrome, and Android

Google+ now has over 90 million users – still only a fraction of Facebook’s users but growing fast. The addition of personal searches will help drive traffic to the site, and Page said that numerous improvements had been made, the equivalent of one a day since the launch of the social network.

On the Chrome front, things are going well, with Page describing it as “on fire,” with the browser taking market share faster than had been anticipated. There was no word on the success – or otherwise – of ChromeOS, however.

Android continues to outperform other mobile operating systems, with a total of 250 million handsets now activated to date, up 50 million since November. In two days, over the Christmas period, 3.7 million handsets were switched on. ®

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.