This Tech Giant Continues to Beat Expectationshttp://www.fool.com/investing/general/2013/01/24/this-tech-giant-continues-to-beat-expectations.aspx Steve Heller
January 24, 2013
Google (NASDAQ: GOOG) continues to impress investors. On Tuesday, the company reported strong fourth-quarter earnings, driven by a 36% increase in year-over-year revenue growth. If that doesn't impress you, Team Mountain View reported an 8% sequential increase in revenue since the third quarter, driven primarily by an increase in aggregate paid click volume. We are living in an era where users have multiple screens connected to the Internet, which CEO Larry Page believes poses a tremendous business opportunity for Google in the years ahead.
Paid clicks grow
The factors negatively affecting CPC appear to be stabilizing, especially when you consider that the 6% year-over-year drop in CPC is the lowest Google has seen in five quarters. If this were the case, it would be a very encouraging development for investors.
Traffic acquisition costs ease
Traffic acquisition costs, the portion of Google's revenue that's shared with its advertising partners, has been steadily on the rise over the last 12 quarters. There has been a growing fear that Google has to spend a larger percentage of its revenue to drive traffic through its domain, which would be problematic for its profit margins. Thankfully, TAC as a percentage of revenue backed off by 1%, easing fears that Google isn't growing faster through its partner network than it is organically. This improvement can be attributed to Android OS' massive 75% market share as well as continued stre