] HipMojo.com » Google’s 67% Spike in Revenues Not Enough, But Plenty

Google’s 67% Spike in Revenues Not Enough, But Plenty

Back in 2006, I wrote something on how Google could be more valuable than MSFT by 2010 given:

a) given its historical growth rate
b) projected growth rate
c) size of paid search today
d) expected growth of paid search by 2010 (40% of online advertising)
e) MSFT’s lack of stock movement

In that analysis I pegged Google’s revenue growth at 70% in 2006 over 2005, apparently, they came in close, but no cigar, at 67%.  It’s still a very impressive number.  But because I was not alone in expecting more, Google “tumbled” 1.5% after hours.

Google reported Q4 2006 revenue today, announcing revenues of $3.21 billion, an increase of 67% compared to Q4 2005 and an increase of 19% compared to Q3 of 2006. Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs, or TAC. In the fourth quarter of 2006, TAC totaled $976 million, or 31% of advertising revenues. $917 million of that was payments to AdSense publishers.

Still freaking impressive.

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Posted By: Ashkan Karbasfrooshan | Jan 31st

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