Google has confirmed landmark success in the US market after increased demand for online advertising bounced third-quarter sales.
Profit at the web search giant soared from $7.23 billion to $7.51 billion. Sudden increase of revenue has hammered observers’ expectations and abated woes that Google’s recent hiring blowout would affect its profits. Google, which earlier announced its plans to open a brand new office on London’s ‘Silicon roundabout’, with 2,585 new staff in three-months time.
Sudden rise in the company’s revenue shows how Google is using its influence as the Internet’s vital gateway to build a business that is robust enough to absorb stock market shocks.
Google is rapidly expanding its influence in social networking and mobile technologies.
Chief executive of Google Inc, Larry Page said: “People are flocking to Google + at an incredible rate and we are just getting started”.
The company is planning to shut down some of its services, for example Code Search, a product that allows users to send updates to their friends via internet and Twitter-like Google Buzz social service to concentrate on Google +.
During a call with analysts, CEO Google Inc said, “Ever since taking over as CEO, I have focused much of my energy on increasing Google?s velocity and execution, and we?re beginning to see results.?
Google, which is famous for making its earnings from search ads, is expected to take 76 percent of the US online market by the end of this year, up from 70 percent in 2009 and 74 percent in 2010,” according to research firm EMarketer.
Entrepreneurs actively showed their acceptance of Google’s results as its share price crashed 6 per cent to $592.36 in after hours in New York.?According to Google, the amount of clicks on ads increased to 28 percent in the third term from then the last year, while the outstanding cost per click increased nearly 5 percent.
“A lot of people were expecting spending to be out of control, but they had good control,” Herman Leung, an analyst with Susquehanna Financial Group, remarked.
Google also recorded an increase in profit from Internet searches handled by them, while Google?s Android software has kicked off as the most-widely used operating system on smartphones.
On other hand, company’s competitors like Yahoo! and Microsoft failed to show any significant results.
As the company is improving its revenue, its plans to influence the market are also taking new directions. Google purchased Motorola Mobility in August for $12.5 billion, which is its biggest take over yet.
Brian Pitz,?an analyst at UBS, added: “The real interesting thing here is the expenses that weren’t as high as Wall Street was anticipating. R&D was less than we were expecting. This is the fourth quarter in a row the company has accelerated their revenue on top line.”
Google’s accomplishment will also increase investors’ faith in Page, who replaced Eric Schmidt as chief executive of the company in April this year.