Google (GOOG): fourth quarter 2010 - new high before castling on top
Disclaimer: This post was written by me as a private person. This post is part of a series of articles on IT company reporting.
Today, Google has summed up its 2010 fiscal year, which ended December 31. The list of participants was larger than ever - as is already well known, on the eve of this, rearrangements between the three leaders were announced.
New CEO (head of the company) becomes Larry Page and will carry out the daily management of Google.
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Sergey Brin will work on strategic projects, the details of which are not yet known, his official position is co-founder (co-founder). Sergey noted that he is happy to do what is interesting to him. It is also known that this is due to the social direction.
As for Eric Schmidt, after 10 years of leadership, he becomes the Executive Chairman and will work on external rather than internal tasks - communicate with partners, customers, the government, wear “external shoes, not internal”. Eric noted several times that he believes Page is ready for a new role. The purpose of the permutations is to optimize the management structure and the decision-making process.
Because of these big news, the actual subject of the event, the company's reporting, remained on the sidelines, although this is absolutely the best quarter in the history of the company - and significantly, this can be clearly seen in the graph on the left. The company's revenue grew over the year by 26% to $ 8.44 billion , net profit to $ 2.54 billion . You can compare it with the results of the previous quarter. The cost per click cost per click (CPC) for the year increased by 5%. Cash reserve is $ 35 billion .
Having recently been immersed in such events, this time for the first time I heard from a company representative who was telling financial details (it was a financial director) I heard not a sharp stream of numbers and achievements, but in fact a live conversation in a free format. It seemed that record profits were not so important. It is important that the company makes changes and thinks about the future.
However, it was noted that in the last holiday season, which in the US begins with November Thanksgiving, there was a significant increase in online purchases. Accordingly, advertising, the main source of profit for Google, is moving from offline to online at an even greater pace. Right advertising is Google’s “great magic.” Let me remind you that 2 days ago on your call Apple talked about its “magic”. As for the search, but very important areas are real-time search, including information from Twitter, and social search, taking into account the identification of users and relationships with each other.
For the third quarter in a row, the international distribution of revenues remained stable - 52% in the United States, 48% in other countries. This means that both parts grow equally fast. Google always allocates a separate UK - there is not such a significant pace - an increase of only $ 38 million.
Much attention is paid to the staff, which in the quarter was 1,000 more, now it is 24,400 people. The company spent $ 1 billion to buy a building in New York, where there are already 2,000 employees. The company has its own style of work, so placing in a standard tower in Manhattan is not an option. Also from January 1, the company raised the salary to all employees by 10%, and also shifted the focus from bonuses to a further increase in direct earnings (this does not apply to top management, for example, Schmidt has a salary of $ 1).
In addition, over the past year, the company has invested in equipment and infrastructure (this includes the purchase of a building in New York), as well as in a more focused product development. Some projects were closed - from the well-known Google Wave and Nexus One direct deliveries to the voice service GOOG-411.
As for existing products, they are systematically developed by recruiting new developers and product managers.
For search, the key to users was the appearance of instant search, the speed of work increased by 10%, which, however, by itself did not directly affect financial performance. Also appeared more intelligent formats of issuance - for example, the schedule of concerts, answers to questions and accounting for the location of users.
There are new advertising formats - side links, lists of products. The experiment, which began with Japan, Korea and Russia, turned out to be successful - now the company writes the address of the advertiser's site as a separate line in the advertisement. Previously, it was right in the text, which in the case of non-Latin languages ​​adversely affected the attention of users - they automatically skipped such texts.
The last quarter was the best in visual advertising, YouTube service doubled its profits, and Android-based mobile devices are activated at a speed of 300,000 units per day. What is more important for Google - mobile search on these devices has increased 10 times over the year, and the company is optimizing the format of advertising - for example, with only a phone number.
Local services continue to be a big area, 5 million companies have already been registered on Google Places. The company is confident in the future growth of NFC devices, which generates more transactions for instant purchases.
The company is confident in the future. In the monthly chart for Google shares, there is a slight decrease in quotations, however, at the annual scale, they are at the maximum level.
Today, Google has summed up its 2010 fiscal year, which ended December 31. The list of participants was larger than ever - as is already well known, on the eve of this, rearrangements between the three leaders were announced.New CEO (head of the company) becomes Larry Page and will carry out the daily management of Google.
')
Sergey Brin will work on strategic projects, the details of which are not yet known, his official position is co-founder (co-founder). Sergey noted that he is happy to do what is interesting to him. It is also known that this is due to the social direction.
As for Eric Schmidt, after 10 years of leadership, he becomes the Executive Chairman and will work on external rather than internal tasks - communicate with partners, customers, the government, wear “external shoes, not internal”. Eric noted several times that he believes Page is ready for a new role. The purpose of the permutations is to optimize the management structure and the decision-making process.
Because of these big news, the actual subject of the event, the company's reporting, remained on the sidelines, although this is absolutely the best quarter in the history of the company - and significantly, this can be clearly seen in the graph on the left. The company's revenue grew over the year by 26% to $ 8.44 billion , net profit to $ 2.54 billion . You can compare it with the results of the previous quarter. The cost per click cost per click (CPC) for the year increased by 5%. Cash reserve is $ 35 billion .
Having recently been immersed in such events, this time for the first time I heard from a company representative who was telling financial details (it was a financial director) I heard not a sharp stream of numbers and achievements, but in fact a live conversation in a free format. It seemed that record profits were not so important. It is important that the company makes changes and thinks about the future.
However, it was noted that in the last holiday season, which in the US begins with November Thanksgiving, there was a significant increase in online purchases. Accordingly, advertising, the main source of profit for Google, is moving from offline to online at an even greater pace. Right advertising is Google’s “great magic.” Let me remind you that 2 days ago on your call Apple talked about its “magic”. As for the search, but very important areas are real-time search, including information from Twitter, and social search, taking into account the identification of users and relationships with each other.
For the third quarter in a row, the international distribution of revenues remained stable - 52% in the United States, 48% in other countries. This means that both parts grow equally fast. Google always allocates a separate UK - there is not such a significant pace - an increase of only $ 38 million.
Much attention is paid to the staff, which in the quarter was 1,000 more, now it is 24,400 people. The company spent $ 1 billion to buy a building in New York, where there are already 2,000 employees. The company has its own style of work, so placing in a standard tower in Manhattan is not an option. Also from January 1, the company raised the salary to all employees by 10%, and also shifted the focus from bonuses to a further increase in direct earnings (this does not apply to top management, for example, Schmidt has a salary of $ 1).
In addition, over the past year, the company has invested in equipment and infrastructure (this includes the purchase of a building in New York), as well as in a more focused product development. Some projects were closed - from the well-known Google Wave and Nexus One direct deliveries to the voice service GOOG-411.
As for existing products, they are systematically developed by recruiting new developers and product managers.
For search, the key to users was the appearance of instant search, the speed of work increased by 10%, which, however, by itself did not directly affect financial performance. Also appeared more intelligent formats of issuance - for example, the schedule of concerts, answers to questions and accounting for the location of users.
There are new advertising formats - side links, lists of products. The experiment, which began with Japan, Korea and Russia, turned out to be successful - now the company writes the address of the advertiser's site as a separate line in the advertisement. Previously, it was right in the text, which in the case of non-Latin languages ​​adversely affected the attention of users - they automatically skipped such texts.
The last quarter was the best in visual advertising, YouTube service doubled its profits, and Android-based mobile devices are activated at a speed of 300,000 units per day. What is more important for Google - mobile search on these devices has increased 10 times over the year, and the company is optimizing the format of advertising - for example, with only a phone number.
Local services continue to be a big area, 5 million companies have already been registered on Google Places. The company is confident in the future growth of NFC devices, which generates more transactions for instant purchases.
The company is confident in the future. In the monthly chart for Google shares, there is a slight decrease in quotations, however, at the annual scale, they are at the maximum level.
Source: https://habr.com/ru/post/112254/
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