Beyond Estimates of $3.21 Billion for Q4
Posted at 2:03pm EST on 02/01/2007
Google reported revenues of $3.21 billion for the quarter ended December 31, 2006, an increase of 67% compared to the fourth quarter of 2005 and an increase of 19% compared to the third quarter of 2006. Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs, or TAC. In the fourth quarter of 2006, TAC totaled $976 million, or 31% of advertising revenues.
To much shock from investors, Google announced that they had a $3.21 billion revenue share for the fourth quarter in 2006. This was quite a shock to investors because almost every was estimating around $2.0 to $2.3 billion.
The wall street expected an increase of $2.29 per share but actually ended up with $3.29. The huge increase in revenue for Google is primarily based on the sales in advertising.
2006 was an amazing year for Google, we hope for an even better 2007!
