Amazon, Yahoo and Google, three of the biggest web based companies reported their Q4 2013 earnings report this week. Yahoo and Amazon failed to cheer up the Wall Street; despite increased revenues, their profit per share dropped in this quarter. Only Google was able to meet market expectations and deliver stunning results.
Following are some major highlights:
Amazon Q4 2013 Highlights
Amazon generated revenues of $25.5 billion in 2013’s last quarter, but net profit of just $239 million. The revenue generated is 20% more than that of last year in the same period. Revenues per share was 52 cents.
But the Wall Street was expecting much more than that. As soon as Amazon shared the results, their share prices dropped 8% as the investors were expecting much more fireworks.
Jeff Bezos was hopeful as he said, “It’s a good time to be an Amazon customer. You can now read your Kindle gate-to-gate, get instant on-device tech support via our revolutionary Mayday button, and have packages delivered to your door even on Sundays. In just the last weeks, Forrester, YouGov, and ForeSee have all ranked Amazon #1 – and we believe we’re just scratching the surface of what world-class customer service can be.”
Yahoo Q4 2013 Highlights
Yahoo too had a bad last quarter of 2013. They generated revenues of $1.2 billion in Q4, which produced 46 cents of profit per share which is an increase of 31% compared to last year. Display ad sales fell 6% for the quarter, whereas 3% more ads were sold all over the world, except South Korea.
Price per Ad also fell 7% in this quarter. Price per click dropped 3%, compared to last year while number of clicks increased 17%. Price per click was down as Yahoo is now serving more ads on mobile and tablets, compared to desktops and PCs.
Yahoo Revenues (last 8 quarters)
Yahoo has increased it’s traffic, and this is the single biggest achievement of the company.
Marissa Mayer said , “In Q4, we launched the new Yahoo Mail, Yahoo Finance, and our new Flickr photo books, while quickening our pace of experimentation. We are extremely heartened by the year-over-year traffic increase we experienced in 2013, an early sign of return on our investments and the acquisitions we’ve made.”
Google Q4 2013 Highlights
Google was the only company among these three, which cheered the investors with its awesome financial results. In the last quarter of 2013, Google generated revenues of $16.86 billion which is 17% more than last year, out of which they had a neat and tidy $3.92 billion operating income which is 23% more than the last year’s results. Net income was clocked at $3.38 billion, up from $2.89 billion last year, for the same period.
Google Revenue Sources
Larry Page said, “We ended 2013 with another great quarter of momentum and growth. Google’s standalone revenue was up 22% year on year, at $15.7 billion. We made great progress across a wide range of product improvements and business goals. I’m also very excited about improving people’s lives even more with continued hard work on our user experiences.”
Google owned site revenue has increased to $10.55 billion, which is 67% of the total revenues and 22% more than last year. Motorola, which is now sold to Lenovo, caused a loss of $384 million, which is very high compared to $152 million loss incurred in the Q3 of 2013.