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Google Revenue Up 17% in Q4 2009

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Google has released its earnings for the fourth quarter of 2009 and the news is positive. Revenue for the Mountain View, CA -based company was up 17% compared to the fourth quarter of 2009, coming in at $6.67 billion.

"Given that the global economy is still in the early days of recovery, this was an extraordinary end to the year," said Eric Schmidt, CEO of Google. "Our performance in 2009 underscored the strength of our management team, the resilience of our business model and the pace of innovation within our product and engineering teams, which continued unabated throughout the downturn."

Here's what contributed to Google's success in Q4 2009:

  • Aggregate paid clicks were up 13% year-over-year and up 9% from the third quarter of 2009.
  • Average Cost-Per-Click was up 5% year-over-year and 2% quarter-over-quarter.
  • Traffic Acquisition Costs (TAC) increased to $1.72 billion in Q4 2009 compared with $1.48 billion last year. TAC as a percentage of revenues held steady at 27%.
  • The majority of TAC is paid to AdSense partners. In the fourth quarter, $1.47 billion of the $1.48 billion of TAC was paid to AdSense partners.

Google's net income profit was $1.97 billion compared to $382 million last year. Adjusted net income was $2.19 billion compared to $1.62 billion last year.

"As we enter 2010, we remain hugely optimistic about the internet and are continuing to invest heavily in technological innovation for the benefit not only of our users and customers, but also the wider web," said Schmidt.

Let's hope Google's numbers reflect a larger trend towards a healthy economic recovery.


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