Feeds

Google profits swell (only) 24 per cent

UK lag

High performance access to file storage

Google's revenues leapt 24 per cent during the second quarter, and profits rose 24 per cent as well. But that wasn't enough to satisfy the Wall Street guessmen.

Mountain View raked in $5.09bn during the quarter ending June 30, up from $4bn in last year's Q2, while income rose to $1.84bn, up from $1.48bn.

"Everyone read the press – what's been happening in Europe, the this, the that. For us, it's been a really great quarter," chief financial officer Patrick Pichette said during a conference call with reports and analysts. "We've seen no impact of what's been going on in the macro world on us."

As a result, Google continues to hire new heads, particularly engineers and sales folk. During the quarter, the company added about 1,200 employee – though that includes the acquisition of mobile ad outfit AdMob and other buys. "Successful products do require investment," Pichette said.

Three quarters ago, Google told the world that the Meltdown was over and that it would be hiring in large numbers again after several quarters of belt-tightening.

But if you exclude certain costs, the company's earnings translated to $6.45 per share, slightly below the $6.52 a share expected by analysts polled by Thomson Reuters.

Google shares dropped more than four per cent in after hours trading.

Aggregate paid clicks – which ad clicks on Google sites as well as the partner sites serving up AdSense ads – jumped about 15 per cent from Q2 2009. But they decreased about three per cent from the first quarter, due to what Pichette called "the typical summer seasonality." Meanwhile, the average cost-per-click grew about four per cent from last year and about two per cent from Q1.

Google sites pulled in revenues of $4.50bn – 66 per cent of total revenues – while the AdSense partner sites generated $2.06bn – 30 per cent of the total.

Revenues generated outside the US topped $3.53 billion, accounting for about 52 per cent of the total. Pichette said the company was pleased with its international growth – though a softer economy caused a revenue drop in the UK. UK revenues were $770m in Q2, 11 per cent of the total. A year ago, the UK accounted for 13 per cent.

"On a relative basis, the UK lagged a bit behind the global economic economy, certainly relative to the US and the rest of the world, which were strong," Pichette said.

During today's call, Pichette and Google vice president Jonathan "Perfect Ad" Rosenberg gave analysts the impression they were particularly pleased with the progress of display advertising, particularly on YouTube. "Our display network, which includes YouTube, is growing very rapidly," Pichette said. But he declined to provide specific YouTube numbers.

He also played up Android's growth, but the company again declined to provide specific numbers. Second quarter numbers still include (minimal) revenue from the sale of Google's Nexus One phone. But after Q3, this will go away, as Google has killed the thing. ®

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.