Google: No Filtering Software, Just Strong Revenue

April 20, 2007

Google's revenue reached $3.66 billion for the first quarter, a 63 percent jump from this time last year and a 14 percent jump from fourth quarter of 2006, company executives announced Thursday.

Google's revenue reached $3.66 billion for the first quarter, a 63 percent jump from this time last year and a 14 percent jump from fourth quarter of 2006, company executives announced Thursday.

Google-owned sites saw a dramatic jump, with $2.28 billion in revenue, or a 76 percent increase from one year ago. The revenue didn't include numbers from DoubleClick, which Google acquired earlier this week.

George Reyes, Google's chief financial officer, touted the company's international gains, which reached $1.71 billion in revenue, or 47 percent of the total. The United Kingdom took up $578 million of that $1.71 billion, though Google also saw growth in Germany, Spain and France, Reyes said.

Most of the $597 million the company spent on capital expenditures went toward data centers, servers and networking costs, Reyes said.

Google has added more than 1,500 employees in 2007 for a current total of 12,238. Reyes said he expects a "continued growth in headcount."

Executives focused a good deal of their time on Google's advertising business.

Clients have "realized there is efficiency in online advertising," said Sergei Brin, Google's president of technology. "Advertisers don't have all the metrics they need to decide which ads to run where and we think we can expand that more to broader kinds of media – not just static images."

"With the acquisition of Double Click, we think we can make more advertisers much more efficient," Brin said.

"We've been incorporating the quality component into ads from the start," said Jonathan Rosenberg, Google's director of business development, pointing to February changes Google made to its quality-based bidding.

"We added to the front-end the ability to give advertisers transparency into their quality," Rosenberg said. "That actually allowed the results to improve pretty substantially."

Reyes said traffic acquisition costs, or revenue shared with Google partners, increased to $1.1 billion from $976 million in Q4 of 2006, which he attributed to "the growth of more significant AdSense partnerships."

Schmidt, meanwhile, downplayed reports that Google had announced at the National Broadcasters Association conference that would apply to its site and the recently acquired YouTube.

"Those reports did not quite get the gist," he said. "Google is building a tool that allows publishers to somewhat automate the take-down process. It's not a filtering system. It doesn't block uploads. It allows us to remove content - quicker - and is very much compliant" with the Digital Millennium Copyright Act."

Copyright 2007 by Ziff Davis Media, Distributed by United Press International

Explore further: As Facebook grows, expect to see more ads on Instagram (Update)

Related Stories

After poking Facebook, life ain't easy for a site named Tsu

November 11, 2015

Suppose every time you posted on Facebook, the social network tallied up the ad revenue it earned against your update and passed a percentage back to you. Of course, Facebook does nothing of the sort—but its much smaller ...

Facebook soars to new heights on upbeat earnings

November 5, 2015

Facebook shares rocketed to an all-time high Thursday as investors welcomed solid earnings for the social networking giant, which has seen big gains in advertising and better connections in mobile and video.

China search giant Baidu sees lift from travel deal

October 30, 2015

Chinese search giant Baidu said Thursday it expects a new travel services partnership to help drive future revenue as the country's middle class grows, after it reported better-than-expected third quarter earnings.

Silicon Valley granddaddy HP readies breakup

November 1, 2015

Seventy-seven years after Bill Hewlett and Dave Packard began tinkering in a Palo Alto garage, the company that became the foundation for Silicon Valley is breaking up.

Recommended for you

Roboticists learn to teach robots from babies

December 1, 2015

Babies learn about the world by exploring how their bodies move in space, grabbing toys, pushing things off tables and by watching and imitating what adults are doing.

Xbox gaming technology may improve X-ray precision

December 1, 2015

With the aim of producing high-quality X-rays with minimal radiation exposure, particularly in children, researchers have developed a new approach to imaging patients. Surprisingly, the new technology isn't a high-tech, high-dollar ...

Making 3-D imaging 1,000 times better

December 1, 2015

MIT researchers have shown that by exploiting the polarization of light—the physical phenomenon behind polarized sunglasses and most 3-D movie systems—they can increase the resolution of conventional 3-D imaging devices ...


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.