Call of the Goog
Well, it has become sort of boringly predictable, and I don’t mean the earnings call that Google serves up at the end of every year, but the fact that the company’s had another amazing year.
Some interesting facts from the call:
- $1.2 billion is the specified AdSense revenues, which is around 37% of total revenue. Which is an interesting number because I’d really like to know where the other 63% of the revenue is coming from. The analysts at the call did not bother to ask about that number.
- Google Checkout is not doing too well, even after the promotions, and the cost for the same is offset against total network revenues.
- Two of the company’s major cost points continue to be Traffic Acquisiton Costs, which was $976 million, compared to $462 million in 2005 and capital expenditure, which grew from $319 million in 2004 to $838 million in 2005 and was at $1.9 billion in 2006. Of course, the other side of the story being that getting in more AdSense partners (major TAC component) and servers only ends up making the company more money. I really wish I was a hardware supplier to Google.
- YouTube revenue is not accounted for separately, though we might just be able to dig it out.
- Eric Schmidt has indicated that they might go for in-context advertising for YouTube, which should be an interesting development to watch out for. He also thinks Chad Hurley is a brilliant leader.