Google is ahead of the rest …
Google is ahead of the rest …
Google is breaking records. According to the company’s quarterly report, for the first time since its inception, its revenue exceeded $ 50 billion. It amounted to $ 50.2 billion, which is 32% more than in 2011. Google’s financials exceeded analyst expectations. Experts attribute the success to the fact that the company effectively profit from advertising on PC.
And this despite the fact that with mobile advertising (which has excellent prospects for the near future, and some problems with profitability at the moment), Google did not work out so smoothly. In general, the company holds 41 percent of the online advertising market, which is tied to the results of search queries in the system. By the way, the vast majority of requests on the Internet are carried out through Google – about 80 percent. At the same time, the total volume of calls to the search engine themselves grew by 24 percent during the reporting period. The main income the company receives from contextual advertising on request. Last year, this revenue was the largest in the history of Google.
“We ended 2012 with a strong quarter,” said CEO Larry Page after reporting. “I remain optimistic about the opportunities that open up as a user-centric technology company.”
After the publication of financial statements, Google shares immediately rose. At an additional auction on Tuesday, they rose 5.1 percent. Their price amounted to 738.85 dollars apiece, against the previous 702.87 dollars, Forbes reports. According to a Google report, in 2012 the company’s earnings per share were $ 32.3, compared to $ 30.2 in 2011. Google’s annual revenue grew 32 percent to $ 50.17 billion. Thus, the company’s revenue exceeded all analyst expectations.
The success of analysts is associated with the pre-Christmas activity of retailers. The expectations of the winter holidays from retailers last year were far from the most rosy. In the United States, they even broke a long tradition, and sales began a day earlier than always, so that customers could spend more money in stores. Retailers did not skimp on online advertising either. In November-October 2012, according to the data of the analytical company ComScore, the cost of electronic advertising in the United States increased by 14 percent. In addition, Google has managed to increase the share of search through smartphones and tablet computers. This allowed the company to compensate for losses from mobile advertising, and to remain in a good win. Google’s quarterly revenue increased by almost 40 percent.
However, a number of specialists recall that comparing reporting data for the IV quarter of 2012 with data for the same period in 2011 is not entirely correct. After all, the results include indicators of Motorola Mobility, which Google acquired on May 22, 2012, making it a subsidiary. Motorola Mobility brought $ 4.17 billion of the company’s earnings last year. However, do not forget that he gave Google for his future “daughter” 12.5 billion dollars. Although he soon sold part of the company back. For $ 2.35 billion, Google handed over to Arris Group that part of the Motorola Mobility console that produces set-top boxes. The consoles did not fit Google’s plans – the company relied on the release of smartphones. Last year, Google released the Nexus 7 tablet and Nexus 4 smartphone, and soon the ambitious company intends to push Apple and Samsung on the leaderboard.
Google was registered on September 4, 1998, and the Google domain appeared on September 15, 1997. com. On August 19, 2004, the company started selling shares in the stock market. Google was founded by Larry Page and Sergey Brin, two former Stanford University students who started working on another search engine, BackRub, two years earlier. And from it, and grew Google. Larry Page and Sergey Brin are still at the helm of a corporation that has grown over the course of 14.5 years. The Google Takeover List has over 120 entries. Among the acquired companies are the already mentioned Motorola Mobility, YouTube, Android (to which Google, in connection with plans to compete with Apple and Samsung, has high expectations) and many others.