Google’s Third Quarter Revenue Up 33% Year Over Year
Google gets to have all the fun especially when it comes to quarterly earnings reports. Rarely is there any bad news and the third quarter of 2011 was no exception. As Larry Page reports from the Google investor relations announcemnent:
“We had a great quarter,” said Larry Page, CEO of Google. “Revenue was up 33% year on year and our quarterly revenue was just short of $10 billion. Google+ is now open to everyone and we just passed the 40 million user mark. People are flocking into Google+ at an incredible rate and we are just getting started!”
Maybe it’s consistent quarterly results like these that draw the ire of those looking to bring Google down through government intervention. The biggest worry Google usually has around these calls is how negatively people will react to the size of their quarterly increase. When people complain that you didn’t grow enough rather than jumping on a quarterly loss it can make these calls kinda fun I would guess. Nice problem to have huh?
Business Insider summed up the report with this:
Here’s what Google reported vs. expectations:
Gross revenue: $9.72 billion vs $9.60 billion expected (by Citi’s Mark Maheny)
Non-GAAP EPS: $9.72 vs. $8.74 (consensus)
Net revenue (- TAC costs): $7.51 billion vs. $7.21 billion (consensus)
Net income: $2.73 billion
Google Sites gross revenue: $6.74 billion vs $6.67 billion (Citi).
Google Network gross revenue: $2.60 billion vs. $2.61 (Citi).
Operating expenses: $3.28 billion, or 34% of revenues. That’s versus $2.19 billion, or 30% of revenue, last year. So it looks like the hiring spree is still ongoing. In fact, Google added 2,585 people during the quarter, bringing headcount above 30,000 for the first time.
For a historical perspective here is a chart showing revenue growth over the past two years. Pretty amazing.
Once again, this is the stuff of envy but, let’s face it, we need Google to be performing both as an industry and as an economy as a whole. Imagine if Google reported a real problem what the shockwave ripple effect would be throughout the economy? That’s one thing we can ill afford at this time so three cheers to Google’s success.
Let’s hope the engine of the online economy keeps humming along in Q4 as well. Do you agree?