Google (NSDQ: GOOG) beat analysts’ expectations Thursday, posting an increase in net revenue of 4.5 percent and net income growth of 18 percent. The figures may back up reports from earlier this week that the search advertising market has largely stabilized, especially considering that the average cost-per-click was up compared to the first quarter. In a statement, Google CEO Eric Schmidt said, “These results highlight the enduring strength of our business model and our responsible efforts to manage expenses in a way that puts us in a good position for the economic upturn, when it occurs.” Nevertheless, Google’s revenue growth continues to slow. Last quarter, Google posted a 10 percent increase in net revenue.
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— Paid click growth: Some analysts had expected paid click growth of 13 percent but Google posted paid click growth of 15 percent, compared to the same period a year ago. That, however, was down from paid click growth of 17 percent during the first quarter.
— Cost-per-click: Average cost per click was down 13 percent compared to a year ago, but up 5 percent from the first quarter.
— Google site revenues: Revenues at Google-owned sites increased 3 percent compared to a year ago.
— Networks revenues: Revenues generated via Google’s AdSense program was up 2 percent.
— International Revenues: Revenues outside the United States increased to 53 percent of Google’s total revenue, continuing a long-term trend. Revenues in the United Kingdom were $715 million.
— Capital expenditures: Google’s capital expenditures amounted to only $139 million during the quarter, down from an already historically low $263 million during the first quarter of the year.
— Employment: For the second quarter in a row, Google’s total employment dropped. The company said it had 19,786 employees as of June 30, down from 20,164 at the end of March. The company’s announcement earlier this year that it would layoff 200 sales and marketing employees took effect during the quarter.