Google flourishing while Yahoo takes another dive!

Third quarter results have been announced and it looks like Google is way ahead of Yahoo when it comes to its financial situation.

Although things don’t look too bad for Yahoo at first glance, a quick look over the current profit amounts for this year, as opposed to the last, show a very different picture.

Sue Decker, President of Yahoo Inc, stated that even though the current revenue climate was extremely tough, Yahoo have still managed to stay focused on their strategic objectives by launching major product initiatives, and are currently looking into ways to reduce their costs and enhance efficiencies to build a stronger, more profitable business.

Yahoo have also announced that they will be reducing their global headcount by at least 10% this quarter in order to bring their costs down from $3.9billion to less than $3.5billion by the end of 2008.

In comparison to Yahoo and the general state of the current financial markets, Google have faired really well.

Google’s revenues have increased from $4.23 billion in the third quarter of last year, to $5.54 billion in the third quarter of this year, a 31% increase. Yahoo only managed to increase their revenue by 1% on 2007, from $1.77 to $1.79 billion.

Google’s net income for the third quarter of 2008 also increased at a healthy rate of 26%, from $1.07 billion to $1.35 billion. Yahoo is left hanging in the shadows with a very unimpressive 65% drop from last year ($151 million to $54 million).

Yahoo is shifting the blame for some of their high expenses this last quarter to the $37 million spent on outside advisors used during the Microsoft proposal and other strategic alternatives.

Google’s specialty, text-ads, is more geared toward the current economic climate, as the advertiser only pay’s for actual clicks. Yahoo’s banner ads on the other hand are not so adaptable, causing this form of advertising to be more susceptible to advertiser’s cost-cutting ventures.

Generally, it is thought that Google’s extensive offering is what is keeping them afloat.