Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
GET RECOGNIZED.
Let an ISACA® certification
elevate your career.

Register today and save
World Wide Web
DDoS Protection Powered By Verisign
Average Rating:
Rate this article:  
Google's Mobile Strategy Pays Off in Second Quarter

Google's Mobile Strategy Pays Off in Second Quarter
By Jennifer LeClaire

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

Despite a rocky economic landscape in numerous global markets, Google's earnings prove that the company's bets on its traditional advertising strategy and its new mobile advertising strategy are paying off handsomely. Google says its second-quarter earnings exceeded $9 billion, and that the company would continue making investments.
 


In good news for the tech sector, Google on Thursday announced earnings for the quarter ended June 30, 2011. Google reported revenues of $9.03 billion.

"We had a great quarter, with revenue up 32 percent year on year for a record-breaking over $9 billion of revenue," said Larry Page, CEO of Google. "I'm super excited about the amazing response to Google+ which lets you share just like in real life."

At a company press conference, Page said the company would continue making significant investments while keeping financial management tight.

"Of course, I understand the need to balance the short term with the longer-term needs because our revenues and growth serve as the engine that funds our innovation," Page said. "But our emerging high-usage products can generate huge new businesses for Google in the long run, just like search, and we have tons of experience monetizing successful products over time."

By the Numbers

GAAP operating income in the second quarter totaled $2.88 billion, or 32 percent of revenues. That compares to GAAP operating income of $2.37 billion, or 35 percent of revenues, in the year-ago period. GAAP net income in the second quarter of 2011 was $2.51 billion, compared to $1.84 billion in the year-ago period.

Google-owned sites generated revenues of $6.23 billion, or 69 percent of total revenues. That's a 39 percent increase over second quarter 2010 revenues of $4.5 billion. And Google's partner sites generated revenues, through AdSense programs, of $2.48 billion, or 28 percent of total revenues, a 20 percent increase. Revenues from outside of the United States totaled $4.87 billion, 54 percent of total revenues. That's fairly consistent with the year-ago period at 53 percent.

Operating expenses, other than cost of revenues, were $2.97 billion in the second quarter of 2011, or 33 percent of revenues, compared to $1.99 billion in the second quarter of 2010, or 29 percent of revenues. In the second quarter, free cash flow was $2.60 billion.

Google vs. Apple

"Google's mobile advertising strategy is paying off royally," said Charles King, principal analyst at Pund IT. "Google reminds me of Microsoft in many ways. They have so many irons in so many fires they are bound to fail more often than they succeed. And the stories of those failures tend to dominate headlines because it's juicier news."

High-profile publicized failures aside, King said, Google's core business is healthy. And despite a rocky economic landscape in numerous global markets, King said, Google's earnings prove that the company's bets on its traditional advertising strategy and its new mobile advertising strategy are paying off handsomely.

"There were some stories published last week on rumors that Apple has drastically discounted the advertising rates for its own mobile advertising strategy. Businesses don't make radical price cuts in their service offering when they are succeeding," King said. "They usually cut costs when those services are having a problem. It's kind of interesting to see Apple slicing rates a week or so before Google announces a fairly majestic bump in earnings driven at least in part by its own mobile strategy."
 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 World Wide Web
1.   Twitter May Remove Pics of Deceased
2.   Google IPO Began Decade of Big Bets
3.   Assange Talks of Leaving Embassy
4.   Russian Hacker To Be Held Until Trial
5.   Online Sites vs. Retailing in India


advertisement
OkCupid Experiments with Daters
Unethical without user consent?
Average Rating:
Twitter May Remove Pics of Deceased
Balancing privacy and public interest.
Average Rating:
Online Retailers Ponder Actual Stores
'Click-and-mortar' shops popping up.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
UPS Stores in 24 States Hit by Data Breach
Big Brown has been breached. UPS said that about 105,000 customer transactions at 51 of its UPS Store locations in 24 states could have been compromised between January and August.
 
Cost of Target Data Breach: $148 Million Plus Loss of Trust
The now infamous Target data breach is still costing the company -- and its shareholders -- plenty. In fact, the retailing giant forecast the December 2013 incident cost shareholders $148 million.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 

Enterprise Hardware Spotlight
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 
Three New Lenovo PCs Aimed at Business Users
Businesses everywhere want computing solutions that do more for less money, and Lenovo has unveiled three new desktop PCs that offer solid computing at a budget-minded price.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 

Mobile Technology Spotlight
Google Glass Adds Voice Access to Phone Contacts
The latest update to Google Glass will let users access their top 20 phone contacts with voice commands alone. A user can then choose a phone call, Google hangouts, e-mail or text messaging.
 
Samsung, B&N Target Amazon with Nook Tablet
They've seen the enemy and it is Amazon. So Samsung and Barnes & Noble are teaming up to combat their common foe with a 7-inch tablet that blends Samsung’s tech, Nook’s content and e-reader platform.
 
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.