Mighty Google Misses | SYS-CON MEDIA

The i-Technology Media!	Register \| Log in

.NET · AJAX · CLOUD · ECLIPSE · FLEX · OPEN WEB · iPHONE · JAVA · LINUX · OPEN SOURCE · ORACLE · PBDJ · SEARCH · SILVERLIGHT · SOA · VIRTUALIZATION · WEB 2.0 · WIRELESS · XML

Comments

Plone and Drupal: Different Approaches, Different Results

paul.nowak wrote: Matt, thanks for the comments. I made an error on the version of Plone. It's 2.5 Plone running on Zope 2.9x. In regards to the additional products, we have a skin installed and we have a product that we had custom developed for us that connects to a PostgreSQL database. We've looked at slow PostgreSQL queries causing problems and have not been able to find an issue. We've also tested for the case where the PostgreSQL server is down and have not been able to create an issue. We therefor...

Nov. 4, 2009 04:19 PM EST

Cloud Expo on Google News

Did you read today's front page stories & breaking news?

2009 East

PLATINUM SPONSORS:

IBM

Smarter Business Solutions Through Dynamic Infrastructure

IBM

Smarter Insights: How the CIO Becomes a Hero Again

Microsoft

Windows Azure

GOLD SPONSORS:

Appsense

Why VDI?

Maximizing the Business Value of Virtualization in Enterprise and Cloud Computing Environments

ExactTarget

Messaging in the Cloud - Email, SMS and Voice

Freedom OSS

Stairway to the Cloud

Sun

Sun's Incubation Platform: Helping Startups Serve the Enterprise

POWER PANELS:

Cloud Computing & Enterprise IT: Cost & Operational Benefits

How and Why is a Flexible IT Infrastructure the Key To the Future?

Click For 2008 West
Event Webcasts

2009 East

GOLD SPONSORS:

Get Your Transactions Under Control: SOA Performance Management

Software AG

Performance Driven Adoption: The Secret to Advancing SOA

Intel

The Evolving SOA Appliance: 3 Game-Changing Innovations

SILVER SPONSOR:

Denodo

Data Mashups: Deliver Your Project Faster with Virtualized Data Services Across Internal & External Sources

POWER PANELS:

The Business Value of Service Orientation

Driving Profitability Through User Experience

Click For 2008 West
Event Webcasts

Live Google News by SYS-CON!

Top Three Links You Must Click On

Press Release

Mighty Google Misses

Google, which does not give guidance, missed both Wall Street's top and bottom expectations for its December quarter

By: Maureen O'Gara

Feb. 1, 2008 02:30 PM

Google, which does not give guidance, missed both Wall Street’s top and bottom expectations for its December quarter by a hair and the punters immediately turned vicious pounding it down around 50 bucks after-hours.

Consensus demanded non-GAAP earnings of $4.44 on revenues of $3.45 billion. Google came in with $4.43 on revenues $3.39 billion.

Those revenues figures, which are what Wall Street uses, are net of what’s called TAC, Google’s traffic acquisition costs, the money it pays its partners, which it this case amounted $1.44 billion or 30% of its ad revenues, up from 26.1% and cutting gross margin a point to 35%.

Its GAAP revenues were $4.83 billion, up 51% year-over-year and up 14% sequentially. Its GAAP earnings were up 17% to $1.21 billion, or $3.79 a share, not as much as it usually gives back.

Seemingly on the bright side consumer ad clicks were up 30% year-over-year, 9% sequentially though Comscore says US clicks were down 7% between November and December, indicative perhaps of belt tightening.

Before Thursday night’s sell-off Google was wending its way back from a hideous January that had sheared $150 off its stock price and stood at $564.30. It was trading around $515 after-hours winding up at $524, down 7%, forecasting a possible nasty Friday for tech.

In a canned statement CEO Eric Schmidt said “We’re very pleased with our performance this quarter. It reflects strong momentum in our core business, growing receptivity to our new business initiatives and improved discipline in managing our operating expenses.”

In the conference call Schmidt said he was “optimistic about 2008” based on the company growing diversification and co-founder Sergey Brin claimed the company wasn’t impact by the economic slowdown.

However, CFO George Reyes confessed that Google is selling ads into social networking sites like Facebook and MySpace. It’s “not monetizing as well as expected” and causing higher-than-expected TAC.

International, where Schmidt said online advertising was “nascent,” represented 48% of total revenue or $2.3 billion.

Headcount was up only 889, giving it 16,805 bodies to feed.

Google said on the call that it was expecting to make “significant capital expenditures,” which must be that $4 billion and counting that it might spend buying airwaves from the government to deliver ads to cell phones.

Published Feb. 1, 2008— Reads 21,678 — Feedback 2
Copyright © 2008 SYS-CON Media, Inc. — All Rights Reserved.
Syndicated stories and blog feeds, all rights reserved by the author.

About Maureen O'Gara
Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025.

Reader Feedback: Page 1 of 1

Ouch! commented on 1 Feb 2008

Revenue rises 51% to $4.8BN, shares fall 6.5%. Go figure!

Google News Desk commented on 31 Jan 2008

Google, which does not give guidance, missed both Wall Street's top and bottom expectations for its December quarter by a hair and the punters turned vicious pounding it down around 50 bucks after-hours.