Google reported strong increases in profit and revenue in the third quarter, during which the company had good results in both its core and emerging businesses.
Google generated total revenue of $7.29 billion in the quarter, ended Sept. 30, 2010, up 23 percent year-on-year. Subtracting commissions and fees it pays to ad network and other partners, revenue was $5.48 billion, $23 million above the consensus expectation of analysts polled by Thomson Financial.
Net income grew 32 percent to $2.17 billion from $1.64 billion in 2009’s third quarter, while earnings per share rose 31 percent to $6.72 from $5.13. On a pro forma basis, which excludes certain items, net income was $2.46 billion, or $7.64 per share, exceeding the analysts’ consensus of $6.67 per share and topping the $1.88 billion, or $5.89 per share, in 2009’s third quarter.
“Google had an excellent quarter,” said Eric Schmidt, CEO of Google, in a statement. “Our core business grew very well, and our newer businesses—particularly display and mobile—continued to show significant momentum.”
Sites owned by Google generated 67 percent of total revenue, while partner sites generated 30 percent. Google got 52 percent of its revenue from its international businesses.
As of Sept., the company had cash, cash equivalents and marketable securities worth $33.4 billion.
During the third quarter, Google grew its global staff by 7 percent to 23,331 full-time employees, up from 21,805 in the second quarter.
People clicked on Google search 16 percent more than on 2009’s third quarter. Google generates most of its revenue from so-called pay-per-click text ads served along with its search engine results and on partner Web sites. The cost to advertisers of those Google PPC ads rose 3 percent year-on-year.