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Google reported gross revenues of $6.82 billion for the quarter ended June 30, 2010, an increase of 24% year on year. The companys net income also increased to $1.84 billion, up from $1.48 billion for the same quarter last year. Traffic acquisition cost remained steady at 26% of advertising revenues, a total of $1.73 billion. In a statement, Google CEO Eric Schmidt said that the quarter was characterised by strong growth in its core business and very strong growth in its emerging business, with strength in “every major product area, as more and more traditional brand advertisers embraced search advertising and as large advertisers increasingly ran integrated campaigns across search, display, and mobile.”


Google’s operating income for the quarter was $2.37 billion (35% of revenues), up from $1.87 billion (34% of revenues), in the second quarter of 2009. Operating Expenses other than cost of revenues, were $1.99 billion in the second quarter of 2010, or 29% of revenues, compared to $1.54 billion in the second quarter of 2009, or 28% of revenues.

Revenue Split

– Google owned sites vs network: Google-owned sites generated revenues of $4.50 billion, or 66% of total revenues, a 23% increase year on year from $3.65 billion. Network Revenues from partner sites (through AdSense programs) were $2.06 billion, or 30% of total revenues, in the second quarter of 2010, a 23% increase year on year from $1.68 billion.

– US vs International Revenues: Revenues from outside of the United States totaled $3.53 billion, representing 52% of total revenues in the second quarter of 2010, compared to 53% in the first quarter of 2010 and 53% in the second quarter of 2009. Revenues from the United Kingdom totaled $770 million, representing 11% of revenues in the second quarter of 2010, compared to 13% in the second quarter of 2009. The UK lagged the rest of the world.
– Paid Clicks: Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of AdSense partners, increased approximately 15% over the second quarter of 2009 and decreased approximately 3% over the first quarter of 2010.
– Cost-Per-Click: Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of AdSense partners, increased approximately 4% year on year and increased approximately 2% quarter on quarter.
– Headcount: On a worldwide basis, Google employed 21,805 full-time employees as of June 30, 2010, up from 20,621 full-time employees as of March 31, 2010.