Google Earnings, Revenue, Clicks and Price Per Click All Up, Stock down

2010 January 21
by Michael H. Berkens

After the market closes today Google’s announced its results for the 4th quarter beating analyst estimates.

Revenue rose 17% from a year ago on strong ad sales.

Revenue for the quarter ended December 31, excluding traffic acquisition costs, was $4.95 billion, slightly higher than the $4.92 billion analysts were expecting. Including those costs, Google posted total revenue of $6.67 billion.

Earnings were $2.19 billion, or $6.79 a share, higher than the analyst expectations of earnings per share of $6.50, and up from year-ago earnings of $1.62 billion, or $5.10 per share.

Traffic acquisition costs, the portion of revenue shared with Google’s partners, totaled $1.72 billion and represented 27 percent of ad revenue.

Paid clicks rose 13 percent from a year ago and the average cost per click increased 5 percent.

However despite the good news and Google shares got hammered down 5% to $554.21 in aftermarket trading.

7 Responses leave one →
  1. 2010 January 21

    They are up because they pay us like s=hit.

    Plain and simple.

  2. 2010 January 21

    Mike,

    Do you know what the % paid out to partners was in the previous reporting periods? Do you have that data?

    larry

  3. 2010 January 21

    @ Paid clicks rose 13 percent from a year ago and the average cost per click increased 5 percent.

    Someone forgot to alert the various parking outfits in regards to the above.

  4. 2010 January 21
    Puckett Myers permalink

    I’m going to figure out what each of my domains makes with G per year then add 50% to 100% on that and sell all the traffic as a one year contract to the respective companies under each domain’s niche.

    I’m done with parking and developing…….Google, Yahoo, and Bing will never let us win in either field of business so I have to go around them.

    I’m done with them. This Jan. is looking worse than last Jan. and with earnings this low it is a real barometer as to how the rest of the year is looking…….piss poor. Much worse than 2009.

    At the rates they are paying us now it is not hard to beat them with redirect deals whereby the advertiser and the domain owner make out really well. The advertiser will save ad dollar and I’ll make a bunch more.

    It’s work…….but then nothing is easy in life. :)

  5. 2010 January 21
    MHB permalink

    Larry

    Check out the official release, I’m in Vegas so short on time, sorry

    http://www.businesswire.com/portal/site/cnnmoney/index.jsp?ndmViewId=news_view&newsId=20100121006638&newsLang=en&ndmConfigId=1000618&vnsId=33

  6. 2010 January 21
    Puckett Myers permalink

    @yanni……..yes the parking companies stay silent while everyone’s earnings skid.

    Domains that used to pay $10 a click are making .50 cents. Yet the parking companies are complacent b/c they don’t want to upset the lion.

    I would not be surprised if Google just up and pulls parking totally this year. They won’t lose revenue b/c all the domains that drop will still resolve to ISP ads when an unregisterd domain in typed in.

    Is there really any reason for them to keep parking alive? Yahoo gets the traffic you say if G drops it? Well, by then Yahoo’s market share will be so low that any uplift from a couple million parked domains won’t be enough to keep the ship afloat.

    Game over …… Google wins. This is how it ends.

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