Newsletters
Business News for Technology Decision-Makers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Business Briefing Mobile Industry News Small Business Business Intelligence More Topics...
Business Briefing
Tame your scariest paperwork. Find Out How
Average Rating:
Rate this article:  
Google Misses Earnings, Grows Google+
Google Misses Earnings, Grows Google+

By Jennifer LeClaire
January 20, 2012 10:50AM

Bookmark and Share
One of the bright spots for Google's fourth-quarter results is Google's extracurricular activities. Google CEO Larry Page said he was excited about the fourth-quarter growth of Android, Gmail, and Google+, which now has 90 million users globally -- well more than double what he announced three months ago.
 



It wasn't Larry Page's best day as Google CEO. That's because he had to deliver his first missed quarterly earnings results to investors.

Blame it on Google's strong foray into mobile advertising, as well as the woes in Europe. Or blame it on cost-per-click, or CPC, price declines. There's plenty of blame to go around in Google's fourth-quarter results. But it's hardly all bad news.

"Google had a really strong quarter ending a great year," said Page. "Full-year revenue was up 29 percent, and our quarterly revenue blew past the $10 billion mark for the first time."

Google's Numbers

Specifically, Google reported revenues of $10.58 billion for the quarter ended Dec. 31. That's a 25 percent increase compared with the fourth quarter of 2010.

Google-owned sites generated revenues of $7.29 billion, or 69 percent of total revenues, in the fourth quarter. That represents a 29 percent increase over year-ago revenues of $5.67 billion. Revenues from outside of the United States totaled $5.60 billion, representing 53 percent of total revenues in the fourth quarter of 2011.

Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of its network members, decreased approximately 8 percent over the fourth quarter of 2010 and decreased approximately 8 percent over the third quarter of 2011.

The CPC Culprit

And therein lies one of the culprits. Indeed, when assessing Google's missed earnings, the blame largely revolves around CPC price declines, according to Greg Sterling, principal analyst at Sterling Market Intelligence.

"There are various theories about why CPC prices dropped, none of which were fully satisfying to the financial analysts who kept asking about it on the earnings call. Google wasn't particularly clear or helpful either in trying to explain it," Sterling said.

"I don't think, however, this is some kind of red flag or negative turning point for Google. Its business remains very healthy by almost all measures. And it far outpaces all its immediate rivals in terms of online ad revenue: Microsoft, Yahoo and Facebook."

Google+ Growing

One of the bright spots for Google is the company's extracurricular activities. Page said he is excited about the growth of Android, Gmail, and Google+, which now has 90 million users globally -- well more than double what he announced three months ago.

"By building a meaningful relationship with our users through Google+ we will create amazing experiences across our services," Page said, noting he is very excited about what Google+ can do in 2012. Page sees tremendous opportunities to help users and grow Google.

Sterling agrees that the Google+ membership numbers are impressive, but said those numbers are not enough. "The engagement" figures were not actually reflective of daily or weekly Google+ usage," he said. "They turned out to be Google account usage and sign-ins."
 

Tell Us What You Think
Comment:

Name:





 Business Briefing
1.   T-Mobile Calls 'BS' on AT&T Promo
2.   Zillow Buys Trulia for $3.5 Billion
3.   China To Call Qualcomm a Monopoly
4.   Apple Faces Suit Over Work Breaks
5.   FDA OKs New Opioid Pain Reliever


advertisement
Backlash Stirs Against H-1B Visas
Debate over foreign workers continues.
Average Rating:
Apple Digital Book Settlement Set
But company still appealing decision.
Average Rating:
Radical.FM's Freemium Biz Model
Online radio startup asks for donations.
Average Rating:


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 
Dropbox for Business Beefs Up Security
Dropbox is upping its game for business users. The cloud-based storage and sharing company has rolled out new security, search and other features to boost its appeal for businesses.
 

Enterprise Hardware Spotlight
Watson Gets His First Customer Service Gig
Since appearing on Jeopardy, IBM's Watson supercomputer has been making a living using his super-intelligent knowledge base for business verticals. Now, Watson's been hired for his first customer service job.
 
Tablet Giants Apple and Samsung Feel the Heat
When a company saturates its home market with a once-hot product, expect it to pump up efforts elsewhere. Apple, for its part, is now pushing iPads to big corporations and the enterprise market.
 
Microsoft Makes Design Central to Its Future
Over the last four years, Microsoft has doubled the number of designers it employs, putting a priority on fashioning devices that work around people's lives -- and that are attractive and cool.
 

Mobile Technology Spotlight
T-Mobile Calls 'BS' on AT&T's New Promotion
While Verizon Wireless is moving to throttle bandwidth hogs, a scrappy T-Mobile is taking on the giants with a limited-time promotion it hopes will drive up the churn rates of its wireless rivals.
 
Microsoft Update to Windows Phone 8.1 Already Coming
An update to Windows Phone 8.1 is on the way just weeks after the release of the product itself. Microsoft has begun detailing some of the update features to phone manufacturers.
 
Stanford Researchers Report Battery Breakthrough
Stanford researchers have found a way to use lithium in a battery's anode, a breakthrough that could triple capacity and has been described as the "holy grail of battery science."
 

Navigation
NewsFactor Business
Home/Top News | Business Briefing | Mobile Industry News | Small Business | Business Intelligence | Innovation | E-Commerce | Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.