Google July 15 announced net revenues of $5.1 billion for the second quarter on earnings per share of $6.45. The search engine reported GAAP net income of $1.84 billion, compared with $1.48 billion in Q2 2009.
Google July 15 announced net
revenues of $5.1 billion for the second quarter on earnings per share of $6.45,
providing the latest in a string of strong quarters.
Analysts polled by Thomson
Reuters had expected $4.99 in revenue on EPS of $6.53. Google's Q2 numbers are
still much better than the same period a year ago, when the company earned
$5.36 a share on net sales of $4.07 billion.
The search engine reported GAAP
net income of $1.84 billion, compared with $1.48 billion in Q2 2009.
Counting TAC, or the money it pays to
partners to advertise on their Websites, Google reported revenues of $6.82
billion, a 24 percent increase over second-quarter 2009 revenues of $5.52
billion.
TAC grew from $1.45 billion in
the Q2 2009 to $1.73 billion this year, good for 26 percent of Google's ad
revenues.
As financial analysts
expected, paid clicks, or clicks related to ads served on Google sites and the
sites of its AdSense partners, grew 15 percent from the year-ago period.
Google shares fell 4 percent
in after-hours trading on the news.
For the most part, it was
business as usual for Google, though Google CEO Eric Schmidt has
turned the earnings call with analysts over to CFO Patrick
Pichette and Jonathan Rosenberg, senior vice president of product management at
Google.
However, Schmidt noted in the
press release:
"We saw strength in
every major product area, as more and more traditional brand advertisers
embraced search advertising and as large advertisers increasingly ran
integrated campaigns across search, display, and mobile. We feel confident
about our future, and plan to continue to invest aggressively in our core areas
of strategic focus."
Google's positives for the
quarter outside the numbers include a
legal victory over Viacom, which sued Google and YouTube in a
$1 billion copyright infringement grievance. Pichette said that defense cost
Google $100 million in three years.
Google also successfully
refreshed its search engine from front to back, upgrading the user interface
and the indexing infrastructure to produce more polished results.
Google's optimism comes in
the
face of a standoff with China that threatened to stall
Google's operations there;
allegations of anti-competitive actions that are
being studied by the European Commission; the
failure of the Nexus One sold via Google's Webstore; and
seemingly no
cohesive plan to shore up its social networking front versus
Facebook.
Google's biggest threat at
this point is Apple, whose
iPhone and iPad tablet threaten to pinch Google's mobile
advertising opportunities on the Web. Google's Android platform is strong, but
still trails far behind the hallowed iPhone, whose biggest threat appears to be
itself thanks to
faulty antennas.
However, ABI Research
believes there is plenty of pie for everyone: $1.2
billion worth by 2015.
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