Google Posts 17% profit
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Excluding special items, Google said earnings for the period were $4.43 a share. Net revenue, or revenue minus payments made to other sites to acquire Internet traffic, came in at $3.39 billion. Analysts polled by Thomson Financial had estimated Google would post earnings excluding special items of $4.44 a share, and net revenue of $3.45 billion.
"We're very, very pleased with our year and also the quarter that's just ended," Google Chief Executive Eric Schmidt said during a conference call with analysts, citing in particular "strong international growth." Revenue from international operations grew to $2.32 billion, or 48% of total revenue, compared to 44% in the period a year earlier, Google said.
But co-founder Sergey Brin said Google's AdSense program, which distributes advertisements among partner sites separate from Google.com, saw some difficulty in the quarter, due to challenges in getting users to click on related ads and generate revenue.
"We have had a challenge in the fourth quarter with social networking [advertising] inventory as a whole," Brin said. "Some of the monetization work we were doing there did not pan out as we'd hoped."
Google's social networking partners in its advertising network include News Corp.'s NWS, popular social networking service MySpace.com and roughly 20 others, Brin said.
Revenue from the AdSense program rose to $1.6 billion in the quarter, compared to $1.2 billion in the period a year earlier. However, Google must make payments to the program's partner sites, which helped increase related costs, the company said. Concerns have emerged recently about the fortunes of Google and other Internet companies amid a U.S. economic slowdown and potential cutbacks in spending on online advertising. Unlike many other companies, Google does not issue financial outlooks. During the conference call, Schmidt steadfastly refused to detail the company's thinking about 2008. When an analyst mentioned a likely "economic slowdown" expected in the coming year, he quickly interjected that, "that's your view, not necessarily ours."
"We have not yet seen any negative impact from the rumors of future recessions," Schmidt said.
One concern specific to Google in recent months has been the company's hiring pace. Google said Thursday it hired 889 new employees in the fourth quarter. In its fiscal third quarter ended in September Google said it hired a record 2,000 new employees, stirring some anxiety about mounting expenses. While i am writing this Article, an important news that can further affect the stock price of Google, Yahoo and Microsoft is as under
"We're very, very pleased with our year and also the quarter that's just ended," Google Chief Executive Eric Schmidt said during a conference call with analysts, citing in particular "strong international growth." Revenue from international operations grew to $2.32 billion, or 48% of total revenue, compared to 44% in the period a year earlier, Google said.
But co-founder Sergey Brin said Google's AdSense program, which distributes advertisements among partner sites separate from Google.com, saw some difficulty in the quarter, due to challenges in getting users to click on related ads and generate revenue.
"We have had a challenge in the fourth quarter with social networking [advertising] inventory as a whole," Brin said. "Some of the monetization work we were doing there did not pan out as we'd hoped."
Google's social networking partners in its advertising network include News Corp.'s NWS, popular social networking service MySpace.com and roughly 20 others, Brin said.
Revenue from the AdSense program rose to $1.6 billion in the quarter, compared to $1.2 billion in the period a year earlier. However, Google must make payments to the program's partner sites, which helped increase related costs, the company said. Concerns have emerged recently about the fortunes of Google and other Internet companies amid a U.S. economic slowdown and potential cutbacks in spending on online advertising. Unlike many other companies, Google does not issue financial outlooks. During the conference call, Schmidt steadfastly refused to detail the company's thinking about 2008. When an analyst mentioned a likely "economic slowdown" expected in the coming year, he quickly interjected that, "that's your view, not necessarily ours."
"We have not yet seen any negative impact from the rumors of future recessions," Schmidt said.
One concern specific to Google in recent months has been the company's hiring pace. Google said Thursday it hired 889 new employees in the fourth quarter. In its fiscal third quarter ended in September Google said it hired a record 2,000 new employees, stirring some anxiety about mounting expenses. While i am writing this Article, an important news that can further affect the stock price of Google, Yahoo and Microsoft is as under
Microsoft seeks to buy Yahoo and take down Google:
Microsoft Corp. on Friday, Feb. 1, 2008, offered to buy Yahoo Inc. for $44.6 billion in an effort to team up on online-advertising juggernaut Google Inc.
Google dominates the lucrative Internet-search business in the U.S. with a 56.3% market share, according to the latest report by Nielsen Online. Yahoo, with 17.7%, and Microsoft, with 13.8%, combined for a market share of 31.5% in December, Nielsen said. Google's global share is even higher. Search is highly valuable because related advertisements can be better tailored to users' interests, increasing the likelihood they will be clicked on and generate revenue. Microsoft's bid for Yahoo is a radical departure from its traditional strategy of building its businesses from within. The $44.6 billion offer dwarfs the $6 billion paid last year for online advertising company aQuantive, Microsoft's largest purchase so far.
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