The growth of Google Inc. (Public, NASDAQ:GOOG) 2010 businesses will be something to watch.Google has send its 3rd quarter earnings report, and early indications suggest companies seem to be turning more and more towards the internet to advertise rather than traditional media like television and newspapers with shares of the company trading up more than $40 after-hours (about 7.5%).Last year Google reported Profits of $6.520 billion, on revenues of $23.6 billion.
The company posted revenue of $7.29 billion for its third quarter, representing 23% growth from the same period last year and about a 7% jump sequentially.
* The $1 billion of mobile revenue is still “search” revenue–not some huge new revenue stream. In the years since Google has been growing this $1 billion of mobile search revenue, the regular-old search revenue has growth $10+ billion.
* The “$2.5 billion of non-text revenue” is less than 10% of Google’s total revenue, which is now ~$30 billion.
* The $2.5 billion includes businesses that Google has had for a decade, such as AdSense. (The network business that places display ads on third-party sites, including this one).
* The $2.5 billion includes DoubleClick, which is ad serving,
* Half of the $2.5 billion, AdSense and DoubleClick, are not likely growing any faster than Google as a whole, and, most importantly,
* The $2.5 billion is gross revenue, not net revenue, and it is therefore far less profitable for the company than the majority of Google’s revenue.
Top line is healthy, expense controls are good, Google look good today