Google on a spending spree
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.
But 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.
But 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%.
