Ok, relax: Google revenues are up
The search market can relax. The industry was looking at Google with mixed feelings when they announced their fourth quarter and 2008 year results. When the numbers would be bad the industry would probably feel the same pain Google would.
Google’s numbers were good enough to keep the industry hopeful for the future. However it’s not all sunshine. Where Google’s revenues rose 18% the fourth quarter earnings showed a drop of 68% compared to the third quarter of 2008. The decline was written to failing investments like a stake Google has in AOL.
“Google performed well in the fourth quarter, despite an increasingly difficult economic environment. Search query growth was strong, revenues were up in most verticals, and we successfully contained costs,” said Eric Schmidt, CEO of Google. “It's unclear how long the global downturn will last, but our focus remains on the long term, and we'll continue to invest in Google's core search and ads business as well as in strategic growth areas such as display, mobile, and enterprise.”
The overall numbers were showing no sense of economic downfall at Google so far. The 18% growth in revenues made the Google stock go slightly up again. It is interesting to see that the revenues from outside the US are outgrowing those of inside the US, showing that other markets (like Europe) are becoming more and more interesting for Google.
Over the last months Google-employees were feeling the costs-cuttings Google was making in different areas. With the announcement of the numbers also came the announcement Google will offer its employees the possibility to exchange their stock options for ones with a lower price. This to make a step towards workers who saw the stock falling over 50 percent in the last 1,5 years.
Finally Eric Schmidt in an interview said that the chance Google will be making more cuts and cancelling more big projects is “highly unlikely”. The future seems bright for Google, but in these economic uncertain days we’ll have to wait and see.
Below: The Google Balance sheet of 2008 (via)
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