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Google on a spending spree

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Google’s revenue rose by 58% to $3.87bn, but its profits increased by a more modest 28%, to $925m. This is due to the fact that Google has spent heavily on acquisitions as well as on increasing its headcount to develops new products and enters new markets.

  • eyes_on_google.jpgBut its biggest outlays were acquisitions – Google made eight purchases, most notably the $3.1bn DoubleClick deal and the purchase of online security firm Postini for $625m.
  • Google added over 1,500 staff in the quarter. That takes its total headcount to 13,786, a 74% increase in the last 12 months.
  • The company also upped its spending on R&D by 88%.

Google is not transparent when it comes to revealing the %revenue shared with Adsense publishers. Considering the fact that it paid 1.15 billion $ as Traffic Acquisition Costs (TAC) [the portion of ad revenues Google pays to its publishing partners and affiliates], the commission comes out to be roughly around 40%.

 
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