The numbers are out … According to Bloomberg, Google said fourth-quarter profit rose sevenfold as it sold more advertising.
Net income jumped to $204.1 million, or 71 cents a share, from $27.3 million, or 10 cents, a year earlier, the Mountain View, California-based company said today in a statement distributed by Business Wire. Sales doubled to $1.03 billion from $512.2 million.
CEO Eric Schmidt is using some of the $1.92 billion that Google raised in the IPO to develop new features that allow users to search online video clips and files on their personal computers.
“Google had an exceptional quarter,” company CEO Eric Schmidt said in a statement. “Revenues and profits increased significantly, our execution was solid across the company and, most importantly, our relationship with our users, partners and advertisers became even stronger.”
While there is no doubt that Google is as strong as ever, investors are still waiting to see if the “build-it and they will come” mentality Google has towards new products, proves successful.
“They’re still the standard setters,'” Soleil Securities analyst Laura Martin said in an interview before the report. “What we’re looking for is what they’re going to do with the money Wall Street gave them.”
Google was up more than $18 (10%), in after-hours trading, just minutes after the announcement.
Andy Beal is an internet marketing consultant and considered one of the world’s most respected and interactive search engine marketing experts. Andy has worked with many Fortune 1000 companies such as Motorola, CitiFinancial, Lowes, Alaska Air, DeWALT, NBC and Experian.
You can read his internet marketing blog at Marketing Pilgrim and reach him at andy.beal@gmail.com.
