“The worst is behind us” said Eric Schmidt, CEO of Google, as the company announced a 7% year on year growth in revenues. Google has reported gross revenues of $5.94 billion for the quarter ended September 30, 2009, up from $5.52 billion reported last quarter. The Company’s net income also increased to $1.64 billion, compared to $1.29 billion in the third quarter of 2008, and $1.48 billion last quarter.


Traffic Acquisition Cost (TAC) for Google remained 27 percent of advertising revenues, at $1.56 billion. Net revenues were at $4.38 billion, up sequentially from $4.07 billion last quarter.

Sep09 Details: Release | Financials | Presentation | Webcast

Revenue Split

— Google owned sites vs network: Payouts to AdSense partners totaled $1.33 billion during the quarter, contributing significantly to TAC, and up from $1.24 billion last quarter. Payouts to distribution partners were $229 million in the third quarter of 2009. Google-owned sites generated revenues of 66 percent of total revenues at $3.96 billion, up 8 percent from $3.67 billion in Q3-08. Last quarter, Google-owned sites contributed to 67 percent of revenues. Google Partner Sites generated $1.80 billion, or 30% of total revenues.


— Paid Clicks – Aggregate paid clicks, which include clicks related to ads served on Google and AdSense partner sites, increased approximately 14 percent year on year, and 4 percent sequentially.

— Cost-Per-Click: Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our AdSense partners, decreased approximately 6 percent over the third quarter of 2008 and increased approximately 5 percent over the Q2-09.


Google’s Operating expenses, other than cost of revenues, were $1.64 billion at 28 percent of revenues, compared to $1.72 billion and 31 percent of revenues in Q3-08. For yet another quarter, Google reported a reduction in headcount: at 19,665 full-time employees as of September 30, 2009, down from 19,786 as of June 30, 2009, 20,164 as of March 31st 2009.