Google Shines In Q2- Grosses Over $9 Billion
It was all merry making for Google as they celebrated huge 2nd quarterly earnings that surpassed $9 billion for the just concluded quarter that ended on June 30th 2011. This was record breaking revenue which outshined the same quarter of last year by a whooping 32%.
2nd Quarter Financial Highlights
Revenues – Compared to the previous year of 2010, revenues reported by Google in 2011 surpassed the previous year’s figures which were $6.82 billion by 32%. The reports were consistent of Generally Accepted Accounting Principles and they were reported on a gross basis exclusive of Traffic Acquisition Costs.
Google Network Revenues – Through AdSense programs, Google partner sites generated revenues of $2.48 billion. This culminated to a total of 28% of all the revenues grossed in the second quarter of 2011.
Google Site Revenues – Google owned sites contributed 69% of all the revenue collected in the 2nd Quarter. This figure translates to $6.23 billion and is 39% higher than that of the previous year which totaled $4.5 billion.
International Revenues – Compared to last year, revenues from outside the U.S in 2011 represented a 2% increase. The figure reported in this case is $4.7 billion. This is 1% higher than the revenue in the 1st Quarter of 2011. The largest sole contributor to Google’s financial success was the United Kingdom which brought in 11% of all the revenues collected in 2011. This translates to $976 million.
TAC – The portion of revenues from Traffic Acquisition Costs rose to $2.11 billion in Q2 compared to $1.73 billion which was recorded in Q2 of 2010. The percentage of advertising revenues was 26% in Q2 of 2011 which is a 2% increment over the TAC revenue reported in Q2 of 2010.
Google also reported that it had amassed $39.1 billion in cash at the end of Q2. The company also had an increase in the number of its employers by 2452 from the month of March to the end of June 2011. Current employee figures stand at 28,768.
Larry Page – commented that the company had substantially increased its velocity and execution in the 2nd Quarter of 2011 and this was a reflection of his key goal since he took over Google as its CEO.
Page was also quick to confirm that Google +, which is the company’s fledging social network, had over ten million users. He also credited Google’s success to the rising popularity of the Android. He estimated that over half a million android devices are activated on a daily basis and that the Android market boasts of over 6,000,000 downloads. Google’s browser “Google Chrome” had also elevated its user base to over 160,000.
He spoke severally about his satisfaction concerning the company’s progress; the “visual redesign” and the “black Google bar” that graces the home page.
Susan Wajcicki (Chief Financial Officer) – was also full of praises for Google. She pointed out that the company had over 135 million activated android devices worldwide and added that there were over ¼ million applications to support these devices. She also announced that chrome books were already in circulation in over 7 countries although she was mum where sales figures were concerned.
Jane Penner (Google’s Spokeswoman) – forwarded some statements concerning Google’s future investments and long term growth. She was also quick to dispel any rumors that were circulating concerning Google and directed the members of the public and the partners to reliable sources for a more detailed description of risk factors that may affect the company’s results.
All in all, it was all good news for Google. The increase in the revenue collected and the launch of Google + seemed to make the guys at Google very happy.