Search engine giant to invest heavily in future, says CEO
Google has reported revenues of $5.94 billion in the third quarter of 2009, an increase of 7% compared to $5.54 billion in the same period last year, showing signs of recovery in the internet advertising market.
The Mountain View, California-based company posted an operating income of $2.07 billion, or 35% of revenues, compared to an operating income of $1.65 billion, or 30% of revenues in the same period a year ago.
Net income for the quarter ended September 30, 2009, rose 27% to $1.64 billion from $1.29 billion in the corresponding period last year. The earnings per share was $5.13 on 320m diluted shares outstanding, compared to $4.06 in the third quarter of 2008 on 318m diluted shares outstanding.
During the quarter, the company incurred a charge of $318m related to stock-based compensation (SBC), while the tax benefit related to SBC was $73m.
Google-owned sites generated revenues of $3.96 billion, an increase of 8% compared to revenues of $3.67 billion in the same period last year. Google partner sites revenues through AdSense rose 7% to $1.8 billion from $1.68 billion.
Geographically, revenues from outside of the US totalled $3.14 billion, representing 53% of total revenues, while revenues from the UK totalled $765m, representing 13% of total revenues in the third quarter of 2009. The company recognised a benefit of $39m to revenues through foreign exchange risk management program.
Eric Schmidt, CEO of Google, said: Google had a strong quarter – we saw 7% year-over-year revenue growth despite the tough economic conditions. 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.