Sunday, October 24, 2021

    Google profits climbs but revenue misses expectations

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    Babatunde Akinsola
    Babatunde Akinsola is aNaija247news' Southwest editor. He's based in Lagos and writes on the Yoruba Nation political issues, news and investigative reports

    Surfboards lean against a wall at the Google office in Santa MonicaInternet giant Google reported fourth-quarter profits of $4.76bn (£3.16bn), up nearly 30% from the same period a year before, but revenue missed Wall Street expectations.

    The company’s revenue increased by 15% to $18bn – nearly the same amount as Apple’s profit last quarter.

    Google, like other US firms, was hurt by the strength of the US dollar.

    It said revenues would have been $541m higher had foreign exchange rates been more favourable.

    The cost-per-click – or the amount Google can charge advertisers for placing ads on its network – decreased by 3% over the quarter, indicating that Google is still having difficulty raising the price it charges for mobile ads.

    The metric is closely watched by investors, who worry that the firm’s mobile ad business is not as strong as its desktop search business – which is troubling, given that consumers are increasingly switching to accessing the internet on their smartphones and mobile devices.

    Google shares dipped nearly 2% in trading after markets had closed, but recovered later in the evening.

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