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Google stock soars on strong Q3

15 Oct 2010
00:00
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Google trounced expectations with a 32% increase in third quarter profit to $2.17 billion, sending its stock price soaring in after-hours trading.

Revenue grew 23% year-on-year to $7.29 billion, while operating income was 30% of revenues or $2.55 billion, Google said.

Earnings per share beat Wall Street expectations - or nearly $50 - to $590.00 in after-hours trading.

In an earnings call, CEO Eric Schmidt said the growth of its Android OS was “well past what I had ever hoped for,” and said the platform now has around 90,000 apps and counting.

He said people who use Android search twice as much as the typical mobile user, and that search revenue is more lucrative for Google on the platform than competing operating systems. These factors mean “Android can become a hugely profitable business for us,” he said.

Google didn't give specific figures on the impact of Android on earnings, but said that the company had achieved a mobile annualized revenue run rate of $1 billion.

Giving details for the first time of its segment revenues, Google also revealed it had earned $2.5 billion from non-text display advertising, including ads from YouTube. Around 2 billion YouTube views are now monetized every week, while the site serves 2 billion views per day.

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