Google Inc (GOOGL)’s Network Paid Clicks Fall 11% In 4Q


Google Inc (NASDAQ:GOOGL) disclosed that the company’s network paid clicks witnessed a year-over-year drop of 11% in the fourth quarter. Sequentially too, it witnessed a fall of 7% from the third quarter. This meant that the company was able to generate less revenue from ads of non-Google properties participating in its AdSense for Content, AdSense for Search, and AdMob Businesses.

The catch was there. Mobile advertising seems to have hurt the overall revenue performance of Google Inc (NASDAQ:GOOGL). As a result, the company’s earnings, as well as, revenue came short of the Wall Street analysts’ expectations once again. Additionally, the loss of few percentage points in search engine also appeared to have played its role.

Revenue Model

The company generated revenue of $12.43 billion from its sites representing a growth of 18% over $10.54 billion recorded in the year-ago quarter. It also represented 69% of its total revenue compared to 67% during the period under review. Similarly, revenue from partner sites fetched $3.72 billion revenue, up 6% from $3.52 billion in the previous year quarter. It also accounted for 20.6% of total revenue, down from 22.4%.

Other revenues of Google Inc (NASDAQ:GOOGL) advanced 18.2% to $1.95 billion from $1.65 billion and represented 10.8% of total revenue compared to 10.5% in the prior year quarter. The company’s global revenue accounted for 56% of total revenue, which was flat with the last year. However, the percentage fell from 58% in the September quarter. International revenue was $10.23 billion.

4Q Results

The search engine giant reported net income of $4.76 billion, up 40.8% from $3.38 billion while earnings surged 39.6% to $6.91 a share from $4.95 a share in the prior year quarter. On an adjusted basis, net income would have grown 3.7% to $4.74 billion from $4.57 billion and EPS 2.7% to $6.88 from $6.7 in the year-ago quarter.

The company’s consolidated revenues advanced 15% to $18.1 billion over the previous year quarter. On average, 43 analysts predicted Google Inc (NASDAQ:GOOGL) to report earnings of $7.11 a share on revenues of $18.46 billion for the December quarter. The company closed the quarter with cash and cash equivalents of $18.35 billion while marketable securities were $46.05 billion at the end of the fourth quarter.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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