Search engine giant Google
reported revenues of $9.72 billion for the quarter ended September 30, 2011, an
increase of 33 percent compared to the third quarter of 2010.
Operating income in the third
quarter of 2011 was $3.06 billion, or 31 percent of revenues. This compares to
operating income of $2.55 billion, or 35 percent of revenues, in the third
quarter of 2010.
Net income in the third quarter
of 2011 was $2.73 billion, compared to $2.17 billion in the third quarter of
2010. Net income in the third quarter of 2011 was $3.18 billion, compared to
$2.46 billion in the third quarter of 2010.
We had a great quarter,” said
Larry Page, CEO of Google. Revenue was up 33 percent year on year and our
quarterly revenue was just short of $10 billion. Google+ is now open to
everyone and we just passed the 40 million user mark. People are flocking
into Google+ at an incredible rate and we are just getting started.”
The company did not share
enough details of Google+ and the update of its $12.5 billion acquisition of
Motorola Mobility business.
The industry was waiting for
updates on both. Google’s financial performance is an indicator of the business
of its clients.
Google-owned sites generated
revenues of $6.74 billion, or 69 percent of total revenues, in the third
quarter of 2011, showing a 39 percent increase over third quarter 2010 revenues
of $4.83 billion.
Google’s partner sites
generated revenues, through AdSense programs, of $2.60 billion, or 27 percent
of total revenues, in the third quarter of 2011, registering an 18 percent
increase from third quarter 2010 network revenues of $2.20 billion.
Revenues from outside of the
United States totaled $5.3 billion, representing 55 percent of total revenues
in the third quarter of 2011, compared to 54 percent in the second quarter of
2011 and 52 percent in the third quarter of 2010.
Revenues from the United
Kingdom totaled $1.05 billion, representing 11 percent of revenues in the third
quarter of 2011, compared to 12 percent in the third quarter of 2010.
Aggregate paid clicks, which
include clicks related to ads served on Google sites and the sites of our
AdSense partners, increased approximately 28 percent over the third quarter of
2010 and increased approximately 13 percent over the second quarter of 2011.
Average cost-per-click, which
includes clicks related to ads served on Google sites and the sites of our
AdSense partners, increased approximately 5 percent over the third quarter of
2010 and decreased approximately 5 percent over the second quarter of 2011.
Traffic acquisition costs, the
portion of revenues shared with Google’s partners, increased to $2.21 billion
in the third quarter of 2011, compared to TAC of $1.81 billion in the third
quarter of 2010. TAC as a percentage of advertising revenues was 24 percent in
the third quarter of 2011, compared to 26 percent in the third quarter of 2010.
The majority of TAC is related
to amounts ultimately paid to our AdSense partners, which totaled $1.83 billion
in the third quarter of 2011. TAC also includes amounts ultimately paid to
certain distribution partners and others who direct traffic to our website,
which totaled $383 million in the third quarter of 2011.
