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Google’s Q2 Revenue: Only Up 58%? Losers.




Google Q2 earnings and income reports are in, disappointing Wall Street with only 58% growth YOY in revenue, 28.3% growth YOY in profits. I’m not kidding about Wall Street being disappointed. According to CNET, Google’s stock fell 7% in after-hours training, presumably because they only grew 28%.

Ten guesses what the top story on Yahoo Finance was when I just went to look at stocks.

That AP story reports:

The second quarter represented the first time that Google’s year-over-year profit hasn’t improved by at least 60 percent since the company went public in August 2004. What’s more, it’s just the second time Google’s earnings have fallen below analyst estimates in its 12 quarters as a public company.

Okay, there’s a point to be made there. Do we need another math lesson here? When you have a really big number (such as a very high revenue), it’s harder and harder to maintain a high growth rate, because the amount you have to grow to keep up gets bigger every quarter.

And $3.87 billion, Google’s total revenue, is a pretty big number. “Excluding traffic acquisition costs, or commission paid to content partners,” says CNET, “Revenue was $2.72 billion, greater than the $2.68 billion analysts were expecting.” ($1.15 billion went to traffic acquisition costs, in case you were wondering.)

So, wait… Google grows almost 30%, exceeds your expectations and . . . their stock price drops $40 in a matter of hours? It really is lonely at the top.

Read the official release here.

  • http://www.marketingpilgrim.com Andy Beal

    As Google’s revenue numbers start to flatten, I wonder if they’ll start issuing guidance.

  • http://www.sneakybusiness.typepad.com DayNovo

    While Google certainly posted a miss today, is it fair to say that the stock “tumbled” after hours? For further consideration click here:
    http://sneakybusiness.typepad.com/sneaky/2007/07/google-misses-s.html

  • http://www.search-mojo.com Janet Driscoll Miller

    Jordan, I just had to say — LOVE the headline. Perhaps if Google were to actually FOCUS on their core revenue stream (AdWords) instead of acquiring every company they can get their hands on to try to “compete” with Microsoft, they might have had better earnings. Just an observation.

  • Jordan McCollum

    @Day–I never said tumbled. I said it “fell” 7%.

    Perhaps I should have used something less “dramatic,” like “did not go up” or “moved in a nonpositive fashion”?

    Your post is amusing :D .

    @Janet–Thanks!

  • http://www.thevanblog.com Steven Bradley

    Jordan I agree it’s a great title. Now if only I could be as much of a loser as Google.

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  • http://www.textadsearch.com/ TextAdSearch

    What do they expect, there are only so many people on the planet. Maybe they will start giving free Googleputers to the third world!

  • http://bushidoblog.com.ar Bushido

    I agree with Janet on this one. The best headline ever in MP (no offense, Andy). The thing I don’t agree on is that they’re not doing well in buying every business they can get their hands on. Eventually they will own the market (literally). Am I frightened? Hell yeah! :D

  • http://www.marketingpilgrim.com Andy Beal

    LOL – it was a great title, now I need to go think of some funny headlines. ;-)

  • Jordan McCollum

    I gotta do my part to keep you on your toes, Andy.

  • http://www.markbarrera.com Mark Barrera

    Anytime you call Google “losers”, I am sure I am not the only one that will chuckle :)

  • http://www.richminx.com Rich Minx

    It does seem a bit silly. I guess it’s like a kid with an A+ average coming home with an A.

  • http://www.phooblog.com Eduardo Fenili

    @ Rich
    Actually, I would say its more like a kid with an A+ perfect score average coming home with an A+ in the 98% percentile:P haha

  • http://www.study-habits.com/study-guide.html Study Guide

    Great title Jordan! Hooked me indeed. There will come a day when Google is forgotten, I wonder when…

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