updated 04:50 pm EDT, Thu July 14, 2011
Google profit, shares surge through huge
Google triggered a share buying spree on Thursday afternoon as it reported results well past expectations for its spring quarter. The company's net profit surged 36 percent to hit $2.51 billion based on a record high $9.03 billion of pure revenue. Much of the rise came from not just paid clicks on ads, which shot up 18 percent, but a 12 percent boost to the average cost per click that made each hit more valuable.
The search giant didn't say how much of the revenue was pure search versus elements related to Android or other platforms. Its self-developed operating systems are usually licensed away for free, but it can often gauge how many ad hits came from Android users versus rivals like iOS or on the desktop.
About 2,500 new people came onboard the company in just the three months, nearly fifth (450) from the ITA takeover.
The spring was the first quarter in which co-founder Larry Page could steer the company after Eric Schmidt moved to an executive chairman role. Many had been watching to see if he would improve the business, which near the end of Schmidt's CEO tenure had been lagging. Page is known to have shaken up large parts of Google's structure and worked to streamline it without cutting jobs.
Mobile played one of the most important parts in the spring. Google said it was already at 550,000 activations per day, up from 500,000 per day. It also now has about 135 million devices in existence and over 250,000 active Android apps. The company was one of the first to have a real, commercial NFC mobile payment system in place with Google Wallet.
Some of its performance has been muted, though, as Android tablets struggled to take off despite many presumptions Google would automatically repeat its success in phones. Research firms have also noted that iPhones are regaining ground after many months of very rapid Android growth.
Investors saw Google getting slightly less than they had hoped for in profits but were nonetheless excited enough to send Google stock soaring over 10 percent in after-hours trading.