After the market closed today Google reported earnings for the 4th Quarter of 2010 ending on December 31, 2010.
Google reported revenues of $8.44 billion for the quarter ended December 31, 2010, an increase of 26% compared to the fourth quarter of 2009. ”
“In the fourth quarter of 2010, TAC (Traffic Acquisition Costs) totaled $2.07 billion, or 25% of advertising revenues.
GAAP operating income in the fourth quarter of 2010 was $2.98 billion, or 35% of revenues.”
This compares to GAAP operating income of $2.48 billion, or 37% of revenues, in the fourth quarter of 2009.”
“Non-GAAP operating income in the fourth quarter of 2010 was $3.38 billion, or 40% of revenues. This compares to non-GAAP operating income of $2.76 billion, or 41% of revenues, in the fourth quarter of 2009”
“GAAP net income in the fourth quarter of 2010 was $2.54 billion, compared to $1.97 billion in the fourth quarter of 2009.”
“Non-GAAP net income in the fourth quarter of 2010 was $2.85 billion, compared to $2.19 billion in the fourth quarter of 2009
“GAAP EPS in the fourth quarter of 2010 was $7.81 compared to $6.13 in the fourth quarter of 2009”
“Google reported revenues of $8.44 billion in the fourth quarter of 2010, representing a 26% increase over fourth quarter 2009 revenues of $6.67 billion.”
“Google Sites Revenues – Google-owned sites generated revenues of $5.67 billion, or 67% of total revenues, in the fourth quarter of 2010. This represents a 28% increase over fourth quarter 2009 revenues of $4.42 billion.”
“Google Network Revenues – Google’s partner sites generated revenues, through AdSense programs, of $2.50 billion, or 30% of total revenues, in the fourth quarter of 2010. This represents a 22% increase from fourth quarter 2009 network revenues of $2.04 billion.”
“Paid Clicks – Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our AdSense partners, increased approximately 18% over the fourth quarter of 2009 and increased approximately 11% over the third quarter of 2010.”
“Cost-Per-Click – Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our AdSense partners, increased approximately 5% over the fourth quarter of 2009 and increased approximately 4% over the third quarter of 2010.”
“TAC – Traffic Acquisition Costs, the portion of revenues shared with Google’s partners, increased to $2.07 billion in the fourth quarter of 2010, compared to TAC of $1.72 billion in the fourth quarter of 2009. TAC as a percentage of advertising revenues was 25% in the fourth quarter of 2010, compared to 27% in the fourth quarter of 2009.”
“The majority of TAC is related to amounts ultimately paid to our AdSense partners, which totaled $1.74 billion in the fourth quarter of 2010. TAC also includes amounts ultimately paid to certain distribution partners and others who direct traffic to our website, which totaled $333 million in the fourth quarter of 2010.”
“Operating Expenses – Operating expenses, other than cost of revenues, were $2.51 billion in the fourth quarter of 2010, or 30% of revenues, compared to $1.78 billion in the fourth quarter of 2009, or 27% of revenues.”
“Operating Income – GAAP operating income in the fourth quarter of 2010 was $2.98 billion, or 35% of revenues. This compares to GAAP operating income of $2.48 billion, or 37% of revenues, in the fourth quarter of 2009. Non-GAAP operating income in the fourth quarter of 2010 was $3.38 billion, or 40% of revenues. This compares to non-GAAP operating income of $2.76 billion, or 41% of revenues, in the fourth quarter of 2009.”
“As of December 31, 2010, cash, cash equivalents, and marketable securities were $35 Billion”
“Google employed 24,400 full-time employees as of December 31, 2010, up from 23,331 full-time employees as of September 30, 2010.”
Beyond the numbers Google announced that its CEO Eric Schmidt was stepping down as CEO and effective April 4th 2011 and will be replaced by Larry Page, Google Co-Founder, who will take charge of Google’s day-to-day operations as Chief Executive Officer.
Sergey Brin, Google Co-Founder, will devote his energy to strategic projects, in particular working on new products.
“Eric Schmidt will assume the role of Executive Chairman, focusing externally on deals, partnerships, customers and broader business relationships, government outreach and technology thought leadership–all of which are increasingly important given Google’s global reach. Internally, he will continue to act as an advisor to Larry and Sergey.”
Google which closed down fractionally at $5 a share today is back up around $10 a share in after hours trading as of time of publication, at $627 a share
“Google which closed down fractionally at $5 a share today is back up around $10 a share in after hours trading as of time of publication, at $627 a share
What is the price of Gold at? Oh ya, $1345=)
I think that they both will meet up in about a year anyway.
maybe, Schmidt will leave Google to start its own SE company?
Hello Mike,
Googles Think Tank makes the old vaunted Bell Labs look like Amateurs. They encourage Innovarive Creators. Most corporations stifle creativity and Google knows it. Create,
Re-Evaluate, Create. ” Thats the way you do it on your MTV”
Gratefully, Jeff Schneider (Contact Group) (Metal Tiger)
my guess: Schmidt will be hired soon by Facebook to develop the Facebook Search Engine [ x.co/L84R ] and the Facebook FB.mail [ x.co/Lp4V ] and will be paid by Facebook twice than Google plus 2% of the Facebook shares at today’s value of over $1.4 billion
Hello Mike,
@Dmtld
Good thought, but may not work in the real world. Scmidts not leaving a real winner for a possible also ran.
Gratefully, Jeff Schneider (Contact Group) (Metal Tiger)
@Jeff: No, not even close. The accomplishments achieved at (pre-Lucent) Bell Labs are still unmatched, and will remain so for a very long time.
I’ve found a company that sells the .CO domains at HALF the price of GoDaddy
only $15/yr. but limited to three domains per customer
uniteddomains.com/service/features
@jeff
but he may receive all these money and FB shares also if fails both goals
I think Schmidt was brought in 10 years ago because Page & Brin didn’t know how to run a company. Now they have a much better idea how things work, so giving them more responsibility makes sense. I am concerned that Schmidt will be more likely to take on outside projects since he will have less responsibility…but hopefully we’ll still get 100% from each of them…
Bigger Google news, they’ve done exactly what I predicted a month ago. Google is now going head to head with Groupon with Google Offers.
http://techcrunch.com/2011/01/20/is-this-googles-groupon-clone-well-the-logo-fits/
RIP Groupon……… AKA (Friendster 3.0)
http://www.guardian.co.uk/technology/blog/2011/jan/04/google-spam
We were joking the other day that an opportunity exists for another search engine to provide more relevant search results by simply scraping google results, then deindexing anything with on-page adsense, EPN or Amazon Affiliates.
Does that TAC mean they are keeping more than 70% of the money they take in and paying us less than 30%???
Yes, William. They are keeping more and more every year.
The TAC shows this clearly. Sadly, they don’t care.
I hope FB and Groupon have some plans for programs whereby we can send traffic to them, just to put Google and Bing in check.
They are both urinating on their partners.
Personally I think they are way too big and their cash position means just about anyone is a target. Can you really look at them and think they are a shining example of an ethical company, I sure don’t. Glad to see that the European Comission is looking at their trade pratices within the search area and keeping exclusivity within a web site.