Google’s Revenue Growth Drops A Bit In Q4 2014
All may not be well at Google in terms of revenue as it seems the company didn’t generate as much as was predicted by analysts.
The technology giant most famous for its search engine and Android OS, reported the earning of 2014’s fourth quarter yesterday with per share earnings of $6.88 for a revenue of $14.48 billion (minus the traffic acquisition costs). The analysts had however predicted that the company would report around $7.08 per share for $14.61 billion in revenue.
The total revenue generated by Google for fiscal year 2014 was $66 billion which is about 19% more than last year.
Last quarter, Google says its aggregate paid clicks increased “approximately 14 percent” while the average cost per click dropped 3 percent. For comparison’s sake, Google said in October that its aggregate paid clicks “increased approximately 17 percent over the third quarter of 2013,” while the average cost per click “decreased approximately 2 percent over the third quarter of 2013.”
In July, those figures were +25 percent and -6 percent, respectively. In April, +26 percent and -9 percent, respectively.
The trend here is simple: Google has managed to slow its declining average cost per click, and that’s a good thing. But Google’s aggregate paid-click growth is slowing which isn’t ideal.
These numbers however in no way mean that the company could be looking at trouble. Google still continues to generate massive revenue and the revenue keeps on growing instead, just not at the pace expected by analysts. Google is still a force to reckon with as is evident by the fact that Google’s advertising business is at the top of the list of all companies.
This maybe a bit of a cause for alarm for the investors, but Google itself shows no signs of stopping and continues researching seemingly impossible projects, keeping in mind the long term goal, such as the their self-driving car.