Google not only nearly doubled its earnings from the third quarter of 2005, but the company beat analysts expectations by about $50 million. The news sent GOOG shares soaring in after hours trading, rising $30 per share just an hour past closing to $456.52.
The news is no doubt a punch in the kidneys for Google’s nearest search competitor Yahoo!, whose earnings dropped 37 percent in Q3. Apparently, much of that went to Google.
Google reported revenues of $2.69 billion, representing a 70% increase over third quarter 2005 revenues of $1.58 billion and a 10% increase over second quarter 2006 revenues of $2.46 billion.
“Our third quarter results are a testament to the strength of our network of advertisers and partners, as well as our continuing focus on users,” said Eric Schmidt, CEO of Google.
“We were particularly pleased with the contributions of our international business in a seasonally weaker quarter. In addition, we continued to forge significant partnerships with companies such as eBay, Fox Interactive Media, and Intuit that will be of great value to all involved.”
Google-owned sites generated revenues of $1.63 billion, or 60% of total revenues, an 84% increase over third quarter 2005 revenues of $885 million and a 14% increase over second quarter 2006 revenues of $1.43 billion.
Google’s partner sites generated revenues, through AdSense programs, of $1.04 billion, or 39% of total revenues, a 54% increase over network revenues of $675 million generated in the third quarter of 2005 and a 4% increase over second quarter 2006 revenues of $997 million.
Revenues from outside of the United States contributed 44% of total revenues, compared to 42% in the second quarter of 2006 and 39% in the third quarter of 2005.
Google said that if exchange rates had remained constant from last year this time or from the second quarter, revenues for Q3 2006 would have been $19-35 million lower.
The only thing that kept Google from creaming their estimates by even more, the company says, were those pesky employee stock payouts.
That leaves Google with a net income of $733 million as compared to $721 million in the second quarter, for an earnings per share of $2.36 on 311 million diluted shares. This beats the second quarter EPS, which was $2.33.
As of the end of September, Google is sitting on about $10.4 billion in cash.
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