Friday, April 15, 2011

Google Announces First Quarter 2011 Results . Sharp rise in earnings, but fails to meet expectations

Google has announced first quarter 2011 results

Google reported revenues of $8.58 billion for the quarter ended March 31, 2011, an increase of 27% compared to the first quarter 2010  revenues of $6.77 billion

 Google-owned sites generated revenues of $5.88 billion, or 69% of total revenues, in the first quarter of 2011.

On a worldwide basis, Google employed 26,316 full-time employees as of March 31, 2011, up from 24,400 full-time employees as of December 31, 2010.

And, it has been engaged in a huge intake of staff, looking to employ more than 6,000 employees this year

Google has about a 65% share of the US search engine market and about 90% in Europe.

Patrick Pichette, Google chief finance officer(CFO), said: “These results demonstrate the value of search and search ads to our users and customers.”

The latest figures show that the number of times people click on Google ads that are sponsored by advertisers rose by 18%.

Even if the Google shows sharp rise in the earnings, Price of Google Shares went down, as  this earning report didn't meet the expectations of the investors.

Google co-founder Larry Page, who replaced Eric Schmidt as CEO after the quarter ended, has indicated he plans to keep investing in long-term opportunities that may take years to pay off, even if that affects the short-term results. Forbes describes Larry Page as Wartime CEO.

Recently Google had invested $168 Million in Solar Power Tower project.

Investors are hungry for details about Larry Page's management plans and strategy as the search giant faces sharp competition from Facebook and Apple Inc, and intensifying regulatory scrutiny.

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