GOOG Numbers
[GOOG](http://finance.yahoo.com/q?s=GOOG) numbers are out and while they are pretty, they are not beautiful. They must have something really big up their sleeve or they are just ramping up their spending for fun. I talked about Google’s last number back here.
I’ll look at a few numbers I looked at back then. Profit margin would be one, which has actually dropped considerably. This might be for tax reasons, but hey, it dropped.
Profit Margin Q2: $343 / $1384 = 24.7%
Profit Margin Q3: $381 / $1578 = 24.1%
Profit Margin Q4: $372 / $1919 = 19.4%
A big part of Google is currently their external network and revenue would only be at $1290 million without TAC.
Network Margin Q2: ($630 million of revenue — $494 of TAC) / $630 of Rev = 21.59%
Network Margin Q3: ($675 million of revenue — $530 of TAC) / $675 of Rev = 21.48%
Network Margin Q4: ($799 million of revenue — $629 of TAC) / $799 of Rev = 21.27%
So their margin is going down in their network.
Then the revenues. Total is $1919, minus the network revenue of $799, and their own site revenue of $1098. This means they have $22 million unaccounted for. Now I presume, as last time, that they do not do any profit with those $22 million. This gives us a profit on Google’s own site of
Q2 Profit Margin on own sites: ($343 — $136) / ($1384 — $630 — $17) = $207 / $737 = 28%
Q3 Profit Margin on own sites: ($381 — $147) / ($1578 — $675 — $18) = $234 / $885 = 26.4%
Q4 Profit Margin on own sites: ($372 — $170) / ($1919 — $799 — $22) = $202 / $1098 = 18,3%
Here their margin decreased even more, admitting that all their extra costs are attributed to their own sites.
They are saved by still growing, but slower than anticipated and the competition is rising. Looking forward what the open market brings and if the stock will tank further.