Revenues increased by 3 per cent quarter-on-quarter from the previous year to $5.5 billion.
Net income increased by 18 per cent quarter-on-quarter from the previous year to $1.5 billion.
Google's revenue outside of the US accounted for 53 per cent of total revenues. The UK market accounted for 13 per cent of total revenues.
Total paid-click volumes were up 15 per cent on the previous year although down 2 per cent on Q1 click volumes. Cost-per-click prices increased by 5 per cent from last quarter as advertisers were competing harder for the reduced volume of clicks.
Google-owned sites account for 66 per cent of revenue and AdSense partner sites contributed 31 per cent of revenue.
Google receives $1.7 billion in revenue from AdSense-related traffic, although currently pays out $1.2 billion or 74 per cent to these partners.
The AdSense program continues to grow, supported by anecdotal evidence that the performance and quality of traffic from Google's content network has been improving for UK advertisers.
Google's costs decreased following 200 job cuts in March, the closure of newspaper and radio advertising units, which were underperforming, and the recession response of closing some employee cafe's. The search giant is managing its business very prudently during these tough economic times.
The company is in an enviable position when it comes to cash, with almost $12 billion to see it through the recession. It is hardly worth the comparison to traditional sectors of the economy such as automotive and manufacturing, which are cash strapped and have rapidly declining revenues.
The bottom line
Although certainly a positive result compared to Q2 last year, when comparing this quarter's result to Q1 of this year, it is also apparent that growth is slowing and the recession is impacting Google. Search marketing continues to be the most effective marketing channel for advertisers and will therefore weather the recession much better than traditional media or other online channels. Google has strong management, a strong product and will remain dominant in a growing, albeit slower, market.
.jpg)
.jpg)