Google announced this week that the company did not meet forecasts. However, it is not all bad news for Google as its mobile app numbers and social network followers continue to increase.
Numbers at a Glance
- Google posted fourth-quarter profits of $2.71 billion. While this is an increase from last year, its share price of $8.22 failed to meet expectations of $10.49 per share.
- Pay-per-click (PPC) advertising revenue fell by eight percent, but paid clicks increased 34 percent. Google said the number of mobile ad clicks grew and advertisers purchase those at a lower cost.
- The company’s social network, Google+, totaled 90 million users since its June launch.
- 700,000 smartphones are activated each day. To date, about 250 million Android devices have been sold. This number has increased by 50 million from November 2011.
Concluding Thoughts
The decline in overseas business and a lower exchange rate are some of the other reasons Google’s numbers fell short. Google will need to gain more market share overseas to meet expectations for its first quarter in 2012.
Overall, I do not view this as entirely bad news for Google. While it missed some expectations, profits continue to increase. The number of people using Android-based devices will continue to increase too. While Google has a long way to go to rival Facebook as the social network of choice, the numbers posted thus far are impressive.
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