Google Earnings: 58% Y/Y, 6% Q/Q

Google disappoints slightly, with operating income down (like Yahoo). Highlights from the release:

Revenues – Google reported revenues of $3.87 billion for the quarter ended June 30, 2007, representing a 58% increase over second quarter 2006 revenues of $2.46 billion and a 6% increase over first quarter 2007 revenues of $3.66 billion. Google reports its revenues, consistent with GAAP, on a gross basis without deducting TAC.

Google Sites Revenues – Google-owned sites generated revenues of $2.49 billion, or 64% of total revenues, in the second quarter of 2007. This represents a 74% increase over second quarter 2006 revenues of $1.43 billion and a 9% increase over first quarter 2007 revenues of $2.28 billion.

Google Network Revenues – Google’s partner sites generated revenues, through AdSense programs, of $1.35 billion, or 35% of total revenues, in the second quarter of 2007. This represents a 36% increase over network revenues of $997 million generated in the second quarter of 2006 and approximately flat with first quarter 2007 revenues of $1.35 billion.

International Revenues – Revenues from outside of the United States totaled $1.84 billion, representing 48% of total revenues in the second quarter of 2007, compared to 42% in the second quarter of 2006 and 47% in the first quarter of 2007. Had foreign exchange rates remained constant from the first quarter of 2007 through the second quarter of 2007, our revenues in the second quarter of 2007 would have been $35 million lower. Had foreign exchange rates remained constant from the second quarter of 2006 through the second quarter of 2007, our revenues in the second quarter of 2007 would have been $121 million lower.

Revenues from the United Kingdom totaled $600 million, representing 15% of revenue in the second quarter of 2007, compared to 15% in the second quarter of 2006 and 16% in the first quarter of 2007.

Paid Clicks – Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our AdSense partners, increased approximately 47% over the second quarter of 2006 and remained approximately the same as the first quarter of 2007.

But . . .

Net Income – GAAP net income for the second quarter of 2007 was $925 million as compared to $1.0 billion in the first quarter of 2007. Non-GAAP net income was $1.12 billion in the second quarter of 2007, compared to $1.16 billion in the first quarter of 2007. GAAP EPS for the second quarter of 2007 was $2.93 on 315 million diluted shares outstanding, compared to $3.18 for the first quarter of 2007, on 315 million diluted shares outstanding. Non-GAAP EPS for the second quarter of 2007 was $3.56, compared to $3.68 in the first quarter of 2007.

Here’s some more from my post at SEL.