Google Inc. is an American public corporation, specializing in Internet search and online advertising. The company is based in Mountain View, California, and has 16,805 full-time employees. It is the largest American company (by market capitalization) that is not part of the Dow Jones Industrial Average. Google was co-founded by Larry Page and Sergey Brin while they were students at Stanford University and the company was first incorporated as a privately held company on September 7, 1998. Google's initial public offering took place on August 19, 2004, raising US$1.67 billion, making it worth US$23 billion. Through a series of new product developments, acquisitions and partnerships, the company has expanded its initial search and advertising business into other areas, including web-based e-mail, online mapping, office productivity, and video sharing, among others.
Shares of Google fell more than 7% in after-hours trading to $524.50, following the company's earnings report. Google (GOOG 564.30, +16.03, +2.9%) said net income for the period ended in December rose to $1.21 billion, or $3.79 a share, compared with $1.03 billion, or $3.29 a share, in the same period a year earlier. Meanwhile revenue rose 51% to $4.83 billion. Excluding special items, Google said earnings for the period were $4.43 a share. Net revenue, or revenue minus payments made to other sites to acquire Internet traffic, came in at $3.39 billion. Analysts polled by Thomson Financial had estimated Google would post earnings excluding special items of $4.44 a share, and net revenue of $3.45 billion.
"We're very, very pleased with our year and also the quarter that's just ended," Google Chief Executive Eric Schmidt said during a conference call with analysts, citing in particular "strong international growth." Revenue from international operations grew to $2.32 billion, or 48% of total revenue, compared to 44% in the period a year earlier, Google said. But co-founder Sergey Brin said Google's AdSense program, which distributes advertisements among partner sites separate from Google.com, saw some difficulty in the quarter, due to challenges in getting users to click on related ads and generate revenue.
Revenue from the AdSense program rose to $1.6 billion in the quarter, compared to $1.2 billion in the period a year earlier. However, Google must make payments to the program's partner sites, which helped increase related costs, the company said. Concerns have emerged recently about the fortunes of Google and other Internet companies amid a U.S. economic slowdown and potential cutbacks in spending on online advertising.
Unlike many other companies, Google does not issue financial outlooks. During the conference call, Schmidt steadfastly refused to detail the company's thinking about 2008. When an analyst mentioned a likely "economic slowdown" expected in the coming year, Schmidt quickly interjected that, "that's your view, not necessarily ours."
"We have not yet seen any negative impact from the rumors of future recessions.
One concern specific to Google in recent months has been the company's hiring pace. Google said Thursday it hired 889 new employees in the fourth quarter. In its fiscal third quarter ended in September Google said it hired a record 2,000 new employees, stirring some anxiety about mounting expenses. Concerns were also raised earlier this month when reports emerged showing an apparent slackening of Google's lead in the Internet search market December. Such a decline in Google's share is unusual, as it usually handily dominates rivals Yahoo Inc.
Google is currently participating in a Federal Communications Commission auction of wireless spectrum, which can be used to provide access to the mobile Internet. Bids for the block of spectrum Google is thought to be most interested in reached $4.7 billion Thursday, though all participants' identities will remain undisclosed until the auction ends.
Google agreed to pay $1.65 billion for online video sharing service YouTube in 2006, and has since experimented with different formats for delivering associated advertisements. "It should become very significant," Google co-founder Larry Page said of YouTube advertising revenue, "exactly when is difficult to predict." To bolster its presence in display, or graphical advertising, Google last year announced its intention to buy display advertising specialist DoubleClick for $3.1 billion, though the deal has not yet been approved by European antitrust regulators.
For more details on Google posts 17% profit gain, but shares slide lower visit www.halfvalue.com and www.halfvalue.co.uk For more information on books visit www.Lookbookstores.com
Shares of Google fell more than 7% in after-hours trading to $524.50, following the company's earnings report. Google (GOOG 564.30, +16.03, +2.9%) said net income for the period ended in December rose to $1.21 billion, or $3.79 a share, compared with $1.03 billion, or $3.29 a share, in the same period a year earlier. Meanwhile revenue rose 51% to $4.83 billion. Excluding special items, Google said earnings for the period were $4.43 a share. Net revenue, or revenue minus payments made to other sites to acquire Internet traffic, came in at $3.39 billion. Analysts polled by Thomson Financial had estimated Google would post earnings excluding special items of $4.44 a share, and net revenue of $3.45 billion.
"We're very, very pleased with our year and also the quarter that's just ended," Google Chief Executive Eric Schmidt said during a conference call with analysts, citing in particular "strong international growth." Revenue from international operations grew to $2.32 billion, or 48% of total revenue, compared to 44% in the period a year earlier, Google said. But co-founder Sergey Brin said Google's AdSense program, which distributes advertisements among partner sites separate from Google.com, saw some difficulty in the quarter, due to challenges in getting users to click on related ads and generate revenue.
Revenue from the AdSense program rose to $1.6 billion in the quarter, compared to $1.2 billion in the period a year earlier. However, Google must make payments to the program's partner sites, which helped increase related costs, the company said. Concerns have emerged recently about the fortunes of Google and other Internet companies amid a U.S. economic slowdown and potential cutbacks in spending on online advertising.
Unlike many other companies, Google does not issue financial outlooks. During the conference call, Schmidt steadfastly refused to detail the company's thinking about 2008. When an analyst mentioned a likely "economic slowdown" expected in the coming year, Schmidt quickly interjected that, "that's your view, not necessarily ours."
"We have not yet seen any negative impact from the rumors of future recessions.
One concern specific to Google in recent months has been the company's hiring pace. Google said Thursday it hired 889 new employees in the fourth quarter. In its fiscal third quarter ended in September Google said it hired a record 2,000 new employees, stirring some anxiety about mounting expenses. Concerns were also raised earlier this month when reports emerged showing an apparent slackening of Google's lead in the Internet search market December. Such a decline in Google's share is unusual, as it usually handily dominates rivals Yahoo Inc.
Google is currently participating in a Federal Communications Commission auction of wireless spectrum, which can be used to provide access to the mobile Internet. Bids for the block of spectrum Google is thought to be most interested in reached $4.7 billion Thursday, though all participants' identities will remain undisclosed until the auction ends.
Google agreed to pay $1.65 billion for online video sharing service YouTube in 2006, and has since experimented with different formats for delivering associated advertisements. "It should become very significant," Google co-founder Larry Page said of YouTube advertising revenue, "exactly when is difficult to predict." To bolster its presence in display, or graphical advertising, Google last year announced its intention to buy display advertising specialist DoubleClick for $3.1 billion, though the deal has not yet been approved by European antitrust regulators.
For more details on Google posts 17% profit gain, but shares slide lower visit www.halfvalue.com and www.halfvalue.co.uk For more information on books visit www.Lookbookstores.com
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