Google’s river of gold

Google has another spectacular financial result but weakness remain.

Google’s quarterly results are in – revenue up 22% on the previous year with a gross profit margin of 300%.  Although the adwords river of gold still makes up 90% of the company’s income.

investor.google.com/earnings/2014/Q2_google_earnings.html

While spectacular, such a reliance on one product line is a vulnerablity. It’s not surprising Google’s leadership is experimenting with new businesses.

It’s also notable that payments to network partners fell as a proportion to revenues, which explains some of the pain sites that rely on Google Adsense checks are feeling.

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Author: Paul Wallbank

Paul Wallbank is a speaker and writer charting how technology is changing society and business. Paul has four regular technology advice radio programs on ABC, a weekly column on the smartcompany.com.au website and has published seven books.

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