Google again reinstated the fact that web 2.0 story has been unaffected by the turmoil in the world economy by reporting revenues of US $5.51 billion for the quarter ended march-09, up 6 percent YoY but slightly down QoQ.
The net income saw 8% growth YoY and stands at $1.42 billion with an EPS of $4.49.
The revenues included $3.70 billion earned from Google owned sites and rest $1.64 billion from partner sites.This puts the advertising revenue ratio for google owned sites to partner networks at 70:30.
Non-U.S Revenues totaled $2.88 billion and now represents 52% of total revenues, compared to 51% a year ago and 50% in the fourth quarter of 2008.
Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of AdSense partners, increased approximately 17% YoY and increased approximately 3% over the dec-08 quarter.
The liquidity position at google remained very strong as it is sitting on a cash pile of $17.8 billion.This could help google to strike big ticket acquisition or mega ad deals.
According to Eric Schmidt, CEO of Google. “Going forward, our priority remains investing for the long term to drive future growth in our core and emerging businesses. Google is now well-placed for the recovery when it occurs”
He also showered praise for twitter further fueling the speculation of google led acquistion or advertising tie-up.
Schmidt said,”Twitter proves that innovation is alive and well in Silicon Valley.Google would be very happy to help Twitter and the other companies like it to monetize their services via advertising.”
Main highlights:
- Google wants to focus more on cash earning businesses.
- They wants to strike mega ad deals with players like twitter or go towards acquisition route.
- PPC rates are rising but rates on partner sites are showing downward trend also due to click fraud.
- Non-U.S revenues are gradually increasing although U.S still remains main market for google.
The results would definitely bring cheers to web startups as big companies in web arsenal are doing good and would also attract these startups to Google’s fold as they try to look for better monetisation strategies further helping Google.
