Google Beats the Street with Earnings Rising 26 Percent

October 14 00:00 2011

New York, October 14 (RainbowNewsLine.com) – Google (NASDAQ: GOOG) has surpassed analysts’ expectations as its Q3 earnings rose 26 percent while the revenues rose 33 percent. The company said that its revenues generated from people searching online with their mobile devices had grown 2.5 times in the last year and that more than 2.5 billion is expected to be generated in the coming year.

Larry Page, Google’s chief executive, said in a call with analysts after the earnings were announced that “When I look back over the last quarter, the word that springs to mind is ‘gangbusters,’ it’s not bad for a 13-year old” referring to Google’s age. He added that “We are also seeing a huge positive revenue impact of mobile.”

Google is investing heavily in mobile and it has nearly 100 percent market share in mobile search. It makes the Android mobile operating system and offers mobile search, apps and ads. However, it did not reveal the contributions of mobile ads and Android in its total revenue.

Almost all of Google’s revenue is generated from advertising and the vast majority from search advertising. It provides Android to handset manufacturers free. Jordan Rohan, an analyst at Stifel Nicolaus said, “The quantification of mobile revenues gives us an indication that Android is cementing Google’s position in mobile advertising,” and added that “Google’s ability to diversify away from the parts of its businesses that are maturing is impressive.”

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