Published July 19, 2012
Google (GOOG) saw shares surge in after-hours trading as the company posted second-quarter financial results that easily topped expectations. The search-engine behemoth saw strong growth in paid clicks, as the average cost-per-click, or the rate advertisers pay per click, fell during the quarter.
Aggregate paid-clicks increased 42% from the second quarter of 2011, or 1% compared to the previous quarter. The average cost-per-click fell 16% compared to the same period last year and increased 1%, sequentially.
The company weighed in with second-quarter net income of $2.79 billion or $8.42 a share, compared with last year’s profit of $2.51 billion or $7.68 a share.
On an adjusted basis, earnings per share rose to $10.12, up from $8.74 a share in the second-quarter of last year.
Total revenue for the quarter came in 35% higher at $12.21 billion, as revenue excluding traffic acquisition -- the revenue number the Street watches -- rose to $9.61 billion, compared with $6.92 billion, one year ago. International revenues came to $5.96 billion, 54% of Google revenues for the second quarter.
The results beat expectations on both the top and bottom lines, as analysts polled by Thomson Reuters had predicted earnings of $10.04 on ex-TAC revenue of $8.41 billion. Earnings per share missed the "whisper number," the unofficial expectation on the Street, for $10.53 a share, according to WhisperNumber.com.
Google’s CEO Larry Page boasted of the company’s strong revenue growth and touted the launch of new products, including the Nexus 7 tablet.
“This quarter is also special because Motorola is now part of the Google family, and we’re excited about the potential to build great devices for users,” Page said, in a statement.
The company completed its acquisition of Motorola Mobility Holdings on May 22. Motorola revenues came to $1.25 billion, or 10% of consolidated revenues in the quarter.
Globally, the company disclosed that it employs 54,604 full-time employees, adding 20,293 through the Motorola acquisition. That compares to a total headcount of 33,077 reported at the end of the first quarter.
Google leapt more than 3% in the aftermarket session, on the strength of results.