Google's Q2 2010 Earnings, Quick Take
- by Laurie Sullivan @lauriesullivan, July 15, 2010
Thomson Reuters polled analysts expected Google to post earnings excluding items of $6.52 per share, and $4.99 billion in net revenue.
Google's high search market share sets the barometer for the search industry. Google-owned sites contributed 66%, or $4.50 billion, to total revenue in the second quarter. This represents a 23% increase compared with second quarter 2009 revenue of $3.65 billion. Partner sites generated through the AdSense program $2.06 billion, or 30% of total revenue, up 23% compared with Q2 2009, which brought in $1.68 billion.
Revenue from outside the United States rose 52% to $3.53 billion. United Kingdom contributed $770 million, representing 11% in the second quarter of 2010, compared with 13% in the second quarter of 2009. Google notes that in Q2 2010 it recognized a benefit of $79 million to revenue through its foreign exchange risk management program, compared with $124 million in the second quarter of 2009.
Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our AdSense partners, increased approximately 15% over the second quarter of 2009 and decreased approximately 3% over the first quarter of 2010.
Average cost-per-click, which includes clicks related to ads served on Google sites and AdSense partner sites rose 4% compared with the year-ago quarter, and 2%, sequentially. Traffic Acquisition Costs, the portion of revenue shared with Google's partners, rose to $1.73 billion, compared with $1.45 billion in the year-ago quarter. TAC, as a percentage of advertising revenue, came in at 26% in Q2 2010, compared with 27% in Q2 2009. AdSense partners received $1.46 billion in the second quarter of 2010.
We'll expand the quick take on Google's earnings after the call.
