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Work in progress. At some point, Google (NASDAQ: GOOG) will turn in less than thrilling numbers — it’s called maturity — but it doesn’t look like this is that time. For 2Q06, Google reported profit of $721 million on $2.46 billion in revenues, up 77 percent from 2Q05 but only 9 percent over 1Q06. Google earned $2.33 per share, up from $1.19 in 2Q06 and $1.95 in 1Q06. Adjusted EPS was $2.49. Thomspon First Call analysts expected $2.22 a share, according to MKTW.
Earnings call: I couldn’t see Chairman & CEO Eric Schmidt but wonder if he was beaming when he started the call with this: “We’re very, very happy with having such a strong quarter in a seasonally-weak period for us. It looks like our model continues to work extremely well; our focus on innovation, the many things that we’ve talked about with you all in the past.” Maybe it’s time for a GOOG earnings drinking game.
— Traffic Acquisition Costs (TAC) were $785 million — 32 percent of ad revenues — in 2Q06. Toolbar deals based on rvenue sharing are included in TAC.