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Update: Google Q2 revenue up 32% to $9B-plus

By Juan Carlos Perez
July 14, 2011 06:50 PM ET

IDG News Service - Google's revenue and profit grew in the second quarter, as the company's core search advertising business continued to perform very well.

Total revenue grew 32 percent year on year in the second quarter, ended June 30, to $9.03 billion, the company said on Thursday.

Subtracting fees and advertising commissions paid to partners, Google's net revenue came in at $6.92 billion, exceeding the $6.55 billion consensus expectation from analysts polled by Thomson Financial.

Net income was $2.51 billion, or $7.68 per share, compared to $1.84 billion, or $5.71 per share, in 2010's second quarter.

On a pro forma basis, which excludes certain one-time items, net income was $2.85 billion, or $8.74 per share, exceeding the $7.86-per-share analyst consensus expectation and topping the $2.08 billion, or $6.45 per share, earned in the second quarter of 2010.

People clicked on 18 percent more ads served by Google and its partners, and the average fee paid by advertisers for a click rose 12 percent, year on year.

"We had a great quarter," CEO Larry Page said during a webcast to discuss the results.

Most of Google's revenue -- 97 percent -- came from advertising, while the rest was generated by its emerging businesses, such as enterprise software and mobile.

Thanks to YouTube and DoubleClick, Google continues to make progress in display advertising, an area in which it had for years been a minor player. Google is now a leader in display advertising, along with Yahoo and Facebook.

The second quarter was Page's first full quarter as CEO, and already the company is seeing results from a shift in the management strategy to focus more on product development, he said.

Google is now paying more attention to the ease of use and the design of its products, he said, citing as an example the company's new social networking site Google+, launched in limited beta test about two weeks ago.

Reprinted with permission from IDG.net. Story copyright 2014 International Data Group. All rights reserved.
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