Earnings: Google

Internet search giant Google yesterday beat expectations after reporting a 7% increase in its net revenue and a much bigger 27% climb in its net income.

The company reported revenue of $5.94bn, which marked a bigger improvement y/y than the 3% rise the company saw for its y/y second quarter result. From the second quarter, this was higher by 8%.

Improvements in the top line came from higher revenues through both Google’s owned sites as well as its partner sites (AdSense programs). Paid clicks also increased, showing 14% jump from last year and 4% from last quarter.

Profits also rose 27% to $1.64bn after seeing growth in the US and a decline of 1% in the UK, down from second quarter’s 3%. Lower operarting costs for Q3 also helped. That said, operating margin declined from both Q2 and last year’s Q3.

CEO Eric Schmidt said the following hopeful words during the conference call:

“While there’s obviously a lot of uncertainty about the pace of economic recovery, we believe the worst of the recession is behind us and we’re seeing lots of signs of that in all of the industries that we pay attention to.”

In its earnings release, Schmidt also said that it is now confident about investing heavily in its future, which covers both its core businesses, which includes ads and the search engine, as well as its emerging business, notably Android and YouTube.

Jump to the official earnings release here.


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