Smaaz’s Blog

Google Announced Fiscal Year 2006 Results

February 1st, 2007

Google today announced the financial results for fiscal year ended December 31, 2006. Here are the most interesting numbers:

Revenues - Google reported revenues of $3.21 billion for the quarter ended December 31, 2006, representing a 67% increase over fourth quarter 2005 revenues of $1.92 billion and a 19% increase over third quarter 2006 revenues of $2.69 billion. Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs, or TAC.

TAC - Traffic Acquisition Costs, the portion of revenues shared with Google’s partners, increased to $976 million in the fourth quarter of 2006. This compares to TAC of $825 million in the third quarter. TAC as a percentage of advertising revenues was 31% in both the fourth quarter and the third quarter.

Operating Expenses - Operating expenses, other than cost of revenues, were $862 million in the fourth quarter. These operating expenses included $493 million in payroll-related and facilities expenses.

Cash - As of December 31, 2006, cash, cash equivalents, and marketable securities were $11.2 billion.

Employees - On a worldwide basis, Google employed 10,674 full-time employees as of December 31, 2006, up from 9,378 full time employees as of September 30, 2006.

The complete report can be found at the Google Investor Relations page.

Entry Filed under: Google