Google make a killing
Has Google reached a peak and plateaued? Well…. no.
In the final quarter of 2014, the company posted revenues of $15.42 billion, however, just one quarter later and they’ve increased that to $17.3 billion, which is a huge step forward for a very established company. Usually, we would expect to see a company settle into its position within the market and revenue growth would usually slow as a result. But Google hadn’t made it this far by sitting still, they’re constantly developing and innovating – justifying the 12% growth (compared to Q1 2014).
In addition to the increased revenues, Google is starting to decrease it’s costs – they’ve cut spending by a whopping 680 million when compared to Q1 of 2014, if they can replicate that across all four quarters, they could have reduced spending by $2.4 billion annually – pushing profits ever higher.
Some of the pessimists out there might think they’re cutting costs to dig themselves out of a financial hole, but, the $65.4 billion they have sitting in the bank, tells a slightly different story.
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