Results season in the tech world is in full flow and Google is up next.
It has something to prove after disappointing in the third quarter, when operating expenses outstripped gains in a changing technological landscape.
The fact that Apple two days ago reported record-breaking results and Facebook last night made a splash with impressive mobile ad revenues probably hasn't helped any pre-announcement jitters.
Here are some things to look out for ahead of tonight’s results:
Can Google pull it out of the bag?
The search engine’s shares tumbled after its third quarter results. This time around analysts will be focused on Google’s advertising revenue, which has been struggling as clients are reluctant to purchase ads that will likely be viewed on a smaller smartphone screen.
Google's paid clicks during the third quarter climbed 17 per cent from last year, but that figure was down from a 25 per cent year-over-year increase in the previous quarter.
So the question is – will this slide continue or are things on the up?
What kind of figures are we talking here?
Google should post growth on all front, according to an analyst forecast compiled by Thomson Reuters. The consensus estimate is for:
Revenue of $18.4 billion, up 9.5 % year-on-year.
Pretax profit of $6.2 billion, up 26.5% year-on-year
Net income of $4.9 billion, up 22% year-on-year
Where does innovation fit in?
Google’s chief executive Larry Page refers to the firms sometime risky initiative as “moon shots”. These are experimental projects which, if successful, are potential game changers in the Google universe.
However, these ventures are time-consuming and expensive, meaning that research can take years to pay off.
When it all works out you end up with Android mobile software and the Chrome Web browser. And when it doesn’t you get Google Glass.
This means that profits can slip in the interim.
New and untested innovations that might get a mention in the results include Google Fiber, the company's attempt to provide people in selected US cities with super-fast internet connections, as well as its designs on providing a phone network.
Those aren't at the stage of generating any significant revenue for the company yet - but they might one day.
