Google revenue up 32% in Q2
Google reported $9 billion in second-quarter revenue on July 14, a 32% increase compared with Q2 2010. The company's revenue from advertising grew 33% year-over-year to $8.7 billion in the second quarter, accounting for 97% of total revenue.
The company earned $6.2 billion from ads on Google sites in Q2, accounting for 69% of all revenue.
Google's net income in the quarter was $2.5 billion, a 36% increase compared with the prior year. The Mountain View, Calif.-based company spent $1.1 billion on sales and marketing in the period, up 73% compared with the prior year.
“In general, display advertising is moving to a scientific model,” Susan Wojcicki, SVP of advertising at Google, said on an earnings call. She added that the new model is based on real-time bidding.
Consumers clicked on 18% more Google-served ads in Q2 than in the same period last year. The average cost advertisers pay for each click rose 12% year-over-year and 6% versus the previous quarter.
Google also paid $1.8 billion to advertisers that use its AdSense product to run search and display ads on the company's network of third-party sites. That amount increased 20% compared with the prior year.
The company said it added 2,452 employees in the second quarter, increasing its total to 28,768 full-time staffers.
Google's non-GAAP earnings per share exceeded analysts' expectations, at $8.74. Analysts had projected non-GAAP earnings per share of $7.87. Non-GAAP earnings are net income adjusted to account for stock-based compensation and related taxes.