Feeds

Google profits swell (only) 24 per cent

UK lag

Gartner critical capabilities for enterprise endpoint backup

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. ®

The essential guide to IT transformation

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer quits Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.