Google (NASDAQ:GOOG) yesterday revealed Q2 results of surprising strength. CEO Larry Page is bursting with pride at what's been achieved, not the least of which is the success so far of Google Plus vs Facebook. In IT Blogwatch, bloggers run the numbers.
Your humble blogwatcher curated these bloggy bits for your entertainment. Not to mention: How Canadian elementary school teachers explain the Cambrian Explosion...
Juan Carlos Perez reports:
Total revenue grew 32 percent year on year in the second quarter. ... Subtracting fees and advertising commissions...Google's net revenue came in at $6.92 billion, exceeding the $6.55 billion consensus expectation. ... People clicked on 18 percent more ads...and the average fee paid by advertisers for a click rose 12 percent, year on year. ... Most of Google's revenue -- 97 percent -- came from advertising.
...Although it hasn't been out for long, [CEO Larry Page] expressed satisfaction with the response that Google+ has received and said he is "super excited." ...[A]lready there are about 10 million Google+ account holders, and they are sharing about 1 billion items per day. ... The company has only scratched the surface of its opportunities for growth, Page said.
Mike Magee's mate mithers:
So-called partners featuring Google's AdSense brought up $2.48 billion for the second quarter, up from Q2 2010's $2.06 billion. ... Its cost-per-click...enjoyed a six percent boost since the start of 2011. ... Traffic acquisition costs, or what Google must fork out to AdSense partners, totaled $1.75 billion for the second quarter of 2011.
...Over half of 'Ogle's revenues where from outside the US. ...Google is still head-hunting, employing 28,768 full-timers at 30 June, 2011 - compared to 26,316 from 31 March. ... Google's revenue is mostly bolstered by its own products and services. ...[T]he FTC really is getting quite cross with Larry Page's troublesome overlords. ... Fortunately it has lobbyists in their legion to make sure no one steps on its vast-reaching toes.
All of which gives Tom Foremski pause:
Google's own sites, such as search, gmail, etc showed 39% growth. ... Google partner sites grew at nearly half the rate: just 20%.
This huge disparity between the growth rates of Google sites and partner sites is without precedent for most of its history. ... For some strange reason no one has...noticed this huge change in its business model. There is no explanation from Google or Wall Street analysts that I could find. ... Google+...is not a business. It [is] a distraction from what...a fundamental change in Google's business.
...If Wall Street models expected near parity in growth...it's no wonder that Google has managed to handily beat analyst earnings estimates. ... What changed that could have produced such a massive boost?
Meanwhile, MG Siegler brushes past:
While this was technically his first full quarter as CEO, he got some flak during the last earnings call for only saying a few sentences. This time, he went much further.
......[H]es clearly enjoying the early success Google+ is seeing. He also believes his re-organization of the company is already paying off. ... He [said] that they also dont do things they dont think could be massive opportunities. All of us at Google want to create services that people across the world use twice a day just like a toothbrush!
How Canadian elementary school teachers explain the Cambrian Explosion
[hat tip: Maggie Koerth-Baker]
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Richi Jennings is an independent analyst/consultant, specializing in blogging, email, and security. He's the creator and main author of Computerworld's IT Blogwatch -- for which he has won American Society of Business Publication Editors and Jesse H. Neal awards on behalf of Computerworld. He also writes The Long View for IDG Enterprise. A cross-functional IT geek since 1985, you can follow him as @richi on Twitter, pretend to be richij's friend on Facebook, or just use good old email: email@example.com. You can also read Richi's full profile and disclosure of his industry affiliations.