Welcome to Google’s Quarter Three 2011 earnings results everyone! In Larry Page’s third quarter as CEO, Google is boasting $9.72 billion in revenue ($7.51 billion when you subtract traffic acquisition costs of $2.21 billion), an increase of 33% compared to third quarter of 2010. GAAP net income is $2.73 billion versus $2.17 billion during the same period last year. Google reported $9.02 billion in revenue last quarter, with $2.51 billion in net income.
Analysts were expecting Google to earn $8.74 per share this quarter on a revenue of $7.21 billion according to the WSJ, representing a more than 30% growth from last year. Google surpassed analyst’s expectations on both revenue and EPS, as non-GAAP EPS this quarter were $9.72.
A lot has happened for Google during this quarter, namely its bid to acquire Motorola and pickup and public launch of Google’s social product Google+. The company presently has 31,353 full-time employees and $42.6 billion in cash.
Google’s sales and marketing costs doubled to $1.2 billion in this quarter, from $661 million in 2010. Research and development cost went from $994 million to $1.4 billion. Most interesting item on the ledger? A $500 million charge from the Justice Department regarding pharmaceutical ads.
Stay tuned. I’m sure we’ll hear more context and information around these numbers during Google’s earnings call today at 1:30 PST.
Google provides search and advertising services, which together aim to organize and monetize the world’s information. In addition to its dominant search engine, it offers a plethora of online tools and platforms including: Gmail, Maps, YouTube, and Google+, the company’s extension into the social space. Most of its Web-based products are free, funded by Google’s highly integrated online advertising platforms AdWords and AdSense. Google promotes the idea that advertising should be highly targeted and relevant to users thus providing...