Social, Mobile the Saviors for Google Last Year
The internet search giant, Google Inc., had their fourth quarter earnings report yesterday, which showed that the company fetched less money per click on their ubiquitous online ads. Investors were hoping that Google’s Q4 would exceed expectations since that quarter encompasses the holiday rush wherein Google could have profited largely if they charged more for their ads. Unfortunately, the average price per ad decreased by 8% compared to the previous year’s price.
Google’s net income edged up just 6% from the same October-December period in 2010, coming off year-over-year increases of more than 25% in each of the previous two quarters. One of the reasons seen why Google’s Q4 fell short is the sluggish economy and government debt crisis in Europe. The weakening euro meant that there were fewer dollars during the previous quarter which greatly affected Google’s earnings.
Though Google’s Q4 ad earnings were amiss, CEO Larry Page stated that he was happy with the result as Google earned $2.7 billion, or $8.22 a share, during the last three months of 2011, compared with $2.54 billion, or $7.81 a share, a year earlier. Google’s revenue rose 25% to nearly $10.6 billion, the first time it surpassed $10 billion in a quarter in the company’s 13-year history.
“I am most excited by the fact that we significantly improved our velocity and execution,” Page said.
Aside from profits earned, Page was delighted to report that Google+ now has more than 90 million users in which 60% of them use G+ each day and more than 80% each week.
Google’s Q4 already affected their stocks as shares fell by 8.3% to $586.53 in premarket trading today.
Google’s hopeful for its social and mobile efforts, which performed well in Q4. Page went on to reveal that over 250 million Android devices have been activated worldwide, with more than 11 billion apps downloaded from the Android Market. That’s a 50 million increase in activations since November, and another billion apps downloaded since December, when Google celebrated 10 billion app downloads with a 10-day sale.
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