Google Report 3rd Quarter Earnings


And unlike Yahoo's 3rd Quarter, Google's numbers look pretty good.

Google reported revenues of $2.69 billion for the quarter ended
September 30, 2006, an increase of 70% compared to the third quarter of
2005 and an increase of 10% compared to the second quarter of 2006.
Google reports its revenues, consistent with GAAP, on a gross basis
without deducting traffic acquisition costs, or TAC. In the third
quarter of 2006, TAC totaled $825 million, or 31% of advertising

70% climb, compared to last year can't be bad at all!

Well done everyone at G


And Joseph Morin quotes

And Joseph Morin quotes Gordon Hitchkiss on Google's potential future earnings:

interesting post by blodget

but it was a comment that picqued my interest. even if only true about the advertiser/fraud/etc and totally discounting the "almost entirely because of one advertiser-" part, it's interesting that G hasn't nuked them. I'm not familiar with the ringtone market nor dadamobile, but I do know the "auto-subscribe" plans are out there.
Google's revenue growth over the past two quarters has been almost entirely because of one advertiser-

This is a company based in italy that buys hundreds of millions of dollars worth of internet advertising from Google, for "Free XYZ ringtones!" or "Complimentary XYZ ringtones!"

You go to one of those sites, under a thousand different domain names but all owned by dadamobile, enter your cellphone number for your "free" ringtone, then find yourself subscribed to a 20 dollar per month ringtone "plan" that you cannot unsubscribe from.

Read any of the SEO or webmasterworld forums and you'll find that most people in the online text ad business are devoting a majority of their time developing dadamobile ringtone campaigns. The stuff pays more than "mesothelioma" per click.

Dadamobile is being sued by the FTC is all 50 states in this country, but as its headquarters are in italy they manage to keep operating with hundreds of shell corporations.

Yahoo and Microsoft have over the past few months stopped doing business with dadamobile, but Google continues to power ahead with them. In fact, over the last two quarters, it is widely believed by those in the SEO crowd that dadamobile has become google's largest advertiser- pushing ebay out of that top spot.

The question is- how much longer can Google depend on cell phone fraud to power its earnings growth?


Keeps going up

Stock is up about 7% already today:

RC, Dadamobile are not a

RC, Dadamobile are not a long term issue. There are members here who have had dealings with them, and got burned. They'll only be able to churn so much, and they'll get shut out of the market. Still, they'll have made a LOT of money by then, so I don't suppose it'll worry them, at that point.

Eventually, various governments will get around to legislating on the issue, long after the market has found a solution. It's just the current "phentermine" style fad

Reason why their $$$ Went up like that

The reason why their earnings went up that much is because of all those Adsense publishers who were banned like anything and they stocked their $$$! Isnt it? LOL...


Look, It is very fucking simple.

How many SEOs actually *believe* Google's double profit number?

How many people do you know are buying double the ads?
How many people do you know are being scalped by dramatically excalated ad prices? 0.05 to $5.000 overnight?
How many people do you know are busy clicking on more ads?

If YHOO fell because of employee stock options, where is the loss of profit due to GOOG GSUs this quarter? O right... that's the ratio decidendi.

Perhaps, just perhaps, it is true that as of 2Q 2006 ClickFraud has become institutionalized as a means of keeping the company solvent just a little longer (to allow continue selling of insiders). Hey, YHOO just pledged to buy back 3 billion worth of stock, GOOG insiders have never bought back a single share. Certainly click fraud is a more rational explanation for a doubling of profits whilst Internet visitors to the engine remained fairly consistent and no where near double what they were.

its not double or

its not double or nothing

layers of growth logarithmically layered on top of one another lead to higher returns. some pieces layered are...

- increasing marketshare
- in a market which is increasing in size
- higher ad pricing
- more relevant ads
- expanded ad network
- biasing results more toward informational sites
- placing multilinks on brand related sites to noise up the serps and encourage more ad clicks

I just sold all my GOOG. the main thing I think that is controlling pricing is insider selling more than earnings, but can you fault them for cashing out a few billion when they have 10s of billions in equity?

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