Google Revenue

Many companies provide forecasts of revenue of Google. However google is among the few companies that have refused to follow this practice. As a result, estimates of Google's revenue by analysts using publicly available data, like comScore numbers, have often been spectacularly wrong.

What exactly Google doing to imp rove revenue front:
1. Google engineers working on optimizing AdWords. Keep bucket-testing AdWords algorithms. Major objective behind an ad optimization project is:
a. Increase revenue per search (RPS) such that ad real estate on the search results page (SERP)is constant.
b. Reduce the ad real estate on each SERP such that RPS not reduced.

Problems to tackle cases when they need to increase RPS, while also using more ad real estate. As need to decide whether to increase revenue or not.

reason for not foreacasting :If Google were to make earnings forecasts there would be huge use of gray hat techniques. The area of the page devotes to ads would keep steadily increasing, leading to longer term problems with customer retention.

Earning pressure on Google: Google's stock price does depend on whether they continue to deliver robust revenue and earnings growth. So implicitly, there is always pressure to beat the estimates. Cut on cost required

report of revenue:Efficent Frontier report for July 2008

Source : "Why Google Doesn't Provide Earnings Forecasts "

http://anand.typepad.com/datawocky/2008/07/why-google-doesnt-provide-earnings-forecasts.html