Google Beats Wall Street Expectations

SMS Text

Google Beats Wall Street Expectations

They did it again. Last week Google again surpassed anyone’s expectations when they reported first quarter results 93% higher than the previous period in 2004. They made more money than even they thought they would. Revenues reported in the first quarter of 2005 exceeded $1.256 billion, a 22% increase over Q4 2004 and a 93% jump in earnings over Q1 2004.

Paid-advertising continues to provide the vast majority of Google’s revenues with a nearly even split between ads displayed on Google owned properties accounting for $657 million or 52% of total revenues and ads distributed throughout the AdWords/AdSense network generating $584 million or 47% of revenues.

Google recognizes the likelihood of long-term competitiveness and volatility in the online-advertising market. They responded to potential threats this week with a beta test of a new twist on an old form of billing, selling ads on a cost-per-impression basis along with their highly profitable charge-per-click model.

Google continues to exceed earnings expectations while continuing their habit of not issuing investor guidance statements. This quarter’s bottom line is a bit higher than the last but the profits are even more enormous. Google continues to mine gold by mining information.

Download: The Beginner's Guide to SEO
A Complete Guide to Getting Started in SEO.