Google announces impressive third-quarter profits
Shares of Google shot up overnight after the company released its third-quarter profits, which surpassed Wall Street expectations.
And the news could not be timelier, as the number of users of its social networking site Google + hit the 40 million mark.
The internet and search provider recorded profits of $9.72 billion – or a 33 per cent increase in profits compared to the same period last year.
Larry Page, chief executive officer at Google, reflected on the results by asserting what those who had seen the raw figures already knew.
"We had a great quarter," he said and further commented: "Revenue was up 33 per cent year-on-year and our quarterly revenue was just short of US$10 billon … People are flocking into Google + at an incredible rate and we are just getting started!"
Of the overall profits made, 69 per cent of total revenues came from Google-owned sites such as its search engine and social network.
And profits generated outside of the United States comprised US$5.3 billion – or 55 per cent of total revenue.
However, it was network revenues made through AdSense programs in partnership with other sites that helped boost the company's overall profit margins – and business in this area was up an estimated 18 per cent on 2010 results.
Income generated via AdSense was for the most part divided into "paid clicks" and "cost-per-click" – commercial practices which relate to ads on Google sites.
In total the number of aggregate clicks increased by roughly 28 per cent during the same quarter for 2010 and another 13 per cent in 2011.
This is good news for Google employees – the company employs just over 30,000 individuals the world over – as well as share holders and investors.
It is also a solid result in the face of tough economic circumstances in Europe and North American, where the effects of the global financial crisis are still being felt.