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TLDR; Revenue increased by 19% which didn't met the growth expectations because same quarter last year revenue growth was 26%. If you don't take fines in to acc
by telltruth 7y ago
TLDR; Revenue increased by 19% which didn't met the growth expectations because same quarter last year revenue growth was 26%. If you don't take fines in to account margin is improved and paid clicks are increased by 39% but the cost per click went down to 19% yoy which seems to be the big factor in missed expectation for the growth. GOOG headcount went up from 85K to 103K yoy.
GOOG is getting beaten right now with analysts because Amazon and FB are being perceived to have done much better with their ad business. People on TV are asking to reduce costs, investments like Waymo and monetize properties like maps. They seem to have lost faith in further growth in Google's ad business due to increasing competition from FB and Amazon.
- e12e 7y agoI must say, nearly 20% quarterly revenue increase sounds pretty amazing for such a large company (I guess not every quarter is equal - but 20% increase every quarter means a doubling of revenue year to year). Is this typical for all the big tech players? Is it really not crazy - is the market(s) still expanding that much?
- myroon5 7y agoEarnings reports are quarterly, but the growth rates mentioned are annual growth rates
- danielcampos93 7y agoTo many, investing is not about the now but the future. Looking at googles curves revenue growth is slowing and costs are growing. Numbers look great right now but meh in the future.
- MarkMc 7y agoIt's not doubling every year. Revenue is up 17% compared to Q1 2018