Google Kills The Quarter: $9 Billion In Revenue

Google had a huge Q2, with revenues of $9.03 billion — a new record. This represents growth of 32% over 2010. Net income was $2.5 billion vs. $1.84 billion during the same period last year. Here are some more highlights from the release:

Revenues – Google reported revenues of $9.03 billion in the second quarter of 2011, representing a 32% increase over second quarter 2010 revenues of $6.82 billion.

Google Sites Revenues – Google-owned sites generated revenues of $6.23 billion, or 69% of total revenues, in the second quarter of 2011. This represents a 39% increase over second quarter 2010 revenues of $4.50 billion.

Google Network Revenues – Google’s partner sites generated revenues, through AdSense programs, of $2.48 billion, or 28% of total revenues, in the second quarter of 2011. This represents a 20% increase from second quarter 2010 network revenues of $2.06 billion.

International Revenues – Revenues from outside of the United States totaled $4.87 billion, representing 54% of total revenues in the second quarter of 2011, compared to 53% in the first quarter of 2011 and 52% in the second quarter of 2010.

Paid Clicks – Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our AdSense partners, increased approximately 18% over the second quarter of 2010 and decreased approximately 2% over the first quarter of 2011.

Cost-Per-Click – Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our AdSense partners, increased approximately 12% over the second quarter of 2010 and increased approximately 6% over the first quarter of 2011.

TAC – Traffic Acquisition Costs, the portion of revenues shared with Google’s partners, increased to $2.11 billion in the second quarter of 2011, compared to TAC of $1.73 billion in the second quarter of 2010. TAC as a percentage of advertising revenues was 24% in the second quarter of 2011, compared to 26% in the second quarter of 2010.

The majority of TAC is related to amounts ultimately paid to our AdSense partners, which totaled $1.75 billion in the second quarter of 2011. TAC also includes amounts ultimately paid to certain distribution partners and others who direct traffic to our website, which totaled $355 million in the second quarter of 2011.

Here are some of the charts from the earnings slides:

Google also had $39 billion in cash and employed “28,768 full-time employees.”

Highlights from the earnings call:

Larry Page said that Google has a much more “product focused structure now.” He said that Google was increasing its “velocity in execution” and that the company was “putting more wood behind fewer arrows” in discussing the shut down of Google Health.

He also touted some early success metrics for Google+, confirming some earlier predictions: “Over 10 million people on Google+.” In addition Page said that “Over 1 billion items [were] shared in a single day on the site.” Page also discussed Android growth: 550,000 activations daily. Over 400 Android devices are being sold today.

“Despite the efforts of some of our competitors there hasn’t been any slowdown.” (Competitors read: Microsoft.)

Page spoke several times about his satisfaction with the “visual redesign” and the “black Google bar” across the page. He said that “given the barriers to using Google+ right now” Google is “thrilled” with its progress. He focused on Circles and selective sharing in distinguishing Google+ from Facebook — though he didn’t use the word “Facebook.” (“Some of our competitors.”)

Google SVP Nikesh Arora touted the success of Google’s display efforts and cited Click to Call as a mobile ad unit/format that has been “particularly successful.”

Susan Wojcicki Google’s SVP of Ads said that there were 135 million activated Android devices in the market. She added that “over 1/3 of ads on YouTube are in skippable format.” She also said that Chromebooks were being sold in seven countries, but provided no sales figures.

Google CFO Patrick Pichette said that mobile “was like search was in 2001″ in discussing how he thought the format would deliver significant revenues down the line. He said about local, “We are assembling all the pieces of the puzzle; and if you look at our arsenal it’s quite formidable.”

I’m on a terrible connection and so have missed many of the comments unfortunately.

Related Topics: Channel: Mobile | Google: Business Issues | Google: Maps & Local | Google: Mobile | Top News

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About The Author: is a Contributing Editor at Search Engine Land. He writes a personal blog Screenwerk, about SoLoMo issues and connecting the dots between online and offline. He also posts at Internet2Go, which is focused on the mobile Internet. Follow him @gsterling.

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  • http://www.michael-martinez.com/ Michael Martinez

    And people said that Panda would affect AdSense revenues. Shame on them.

  • http://keithbrown.com Keith Brown

    Great write-up Greg, thanks for the quick review. A happy Mountain View is a happy Keith.

  • http://screenwerk.com Greg Sterling

    Sure. I was on a connection that was quitting every other minute. It was quite a challenge to listen in on the call.

  • http://www.brianfosse.com brianfosse

    Wow, well done Google. I agree with Keith. Google’s ecosystem has done so much to push the envelope online, enable small businesses and leverage information – I’m happy to see them succeed.

  • MrPibb

    Of course Google killed it. They changed AdWords in May to force more competition, which increased costs for everyone across the board. It forced the little guys to over spend or not compete.

    Our cost per lead went up by a magnitude of 4X the day after the change went into effect.

    Good work Google. You blew it to raise your profits. Fortunately Bing/Yahoo are much more affordable. Less traffic, sure, but the lead quality is outstanding.

  • TimmyTime

    “And people said that Panda would affect AdSense revenues. Shame on them.”

    Google would have pulled Panda in 24 hours if that was the case. Now that Panda forced Pandafied sites to advertise and brands to spend more of their Google SERP profits, Good Luck to those in panda prison. Google isn’t going to mess their profits to bring your site back, get a job.

  • Hiren vaghela

    Wow great news for Google. It will show their impact on current treads. Lots of creative things are going in Google and people are love it including me. Happy to see the success.

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