Google Impresses with 3Q Results

By Cindy Waxer October 15, 2010

Despite a slow economy, Google’s third-quarter results are a strong indication of the Mountain View-based company’s continued growth.

Google reported revenues of $5.94 billion for the quarter ending Sept. 30, 2009, an increase of 7 percent compared to the third quarter of 2008. In the third quarter of 2009, TAC totaled $1.56 billion, or 27 percent of advertising revenues.

"Google had a strong quarter -- we saw 7 percent year-over-year revenue growth despite the tough economic conditions," said Eric Schmidt, CEO of Google. "While there is a lot of uncertainty about the pace of economic recovery, we believe the worst of the recession is behind us and now feel confident about investing heavily in our future."

Operating income in the third quarter of 2009 was $2.07 billion, or 35 percent of revenues. This figure compares to operating income of $1.65 billion, or 30 percent of revenues, in the third quarter of 2008. And the company’s net income surged to $1.64 billion, compared to $1.29 billion in the third quarter of 2008.

Google’s partner sites also fared well, generating revenues, through AdSense programs, of $1.80 billion, or 30 percent of total revenues, in the third quarter of 2009. This represents a 7 percent increase from third quarter 2008 network revenues of $1.68 billion.

Google’s strong third-quarter results should allay investors’ fears that the company has over-spent on acquisitions. After all, the company has acquired about 80 companies since 2001. In April of 2007, Google acquired DoubleClick, Inc., a provider of digital marketing technology and services, for $3.1 billion in cash from San Francisco-based private equity firm Hellman & Friedman along with JMI Equity and management.

And in late 2009, Google purchased AdMob, a mobile ad platform popular among iPhone users, for $750 million.




Edited by Tammy Wolf

TechZone360 Contributing Editor

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