Google grows earnings, revenue in Q3 as ad sales accelerate
- 14 October, 2011 07:38
Google grew its sales and profits in the third quarter, exceeding Wall Street's expectations along the way, as the search company's advertising business continued on a strong growth path.
Google CEO and Co-Founder Larry Page described the quarter as "great" in a statement, as both the price and volume of Google-served pay-per-click ads increased year-on-year.
Google ended the quarter with revenue of US$9.72 billion, up 33 percent year-on-year. Subtracting commissions and fees paid to partners, revenue was $7.51 billion, exceeding the consensus estimate of $7.21 billion from financial analysts polled by Thomson Financial.
The company had net income of $2.73 billion, or $8.33 per share, up from $2.17 billion, or $6.72 per share, in 2010's third quarter. On a pro forma basis, which factors in certain one-time items, net income was $3.18 billion, or $9.72 per share, beating the analysts' consensus expectation of $8.74 and exceeding the $2.46 billion, or $7.64 per share, in last year's third quarter.
Google-owned sites generated 69 percent of total revenue. The company's international business accounted for 55 percent of all revenue.
Users clicked on Google-served ads 28 percent more times in the quarter, year-on-year, and the average fee paid by advertisers for each click rose 5 percent year on year.
Google finished the quarter with $42.6 billion in cash, cash equivalents, and short-term marketable securities. Its global staff increased to 31,353 full-time employees, up from 28,768 full-time employees at the end of the second quarter.