Google Earnings: Here They Are

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Here are highlights from the release:

Revenues – Google reported revenues of $2.46 billion for the quarter ended June 30, 2006, representing a 77% increase over second quarter 2005 revenues of $1.38 billion and a 9% increase over first quarter 2006 revenues of $2.25 billion. Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs, or TAC.

Google Sites Revenues – Google-owned sites generated revenues of $1.43 billion, or 58% of total revenues. This represents a 94% increase over second quarter 2005 revenues of $737 million and a 10% increase over first quarter 2006 revenues of $1.30 billion.

Google Network Revenues – Google’s partner sites generated revenues, through AdSense programs, of $997 million, or 41% of total revenues. This is a 58% increase over network revenues of $630 million generated in the second quarter of 2005 and a 7% increase over first quarter 2006 revenues of $928 million.

International Revenues – Revenues from outside of the United States contributed 42% of total revenues, compared to 42% in the first quarter of 2006 and 39% in the second quarter of 2005. Had foreign exchange rates remained constant from the first quarter through the second quarter of 2006, our revenues would have been $26 million lower. Had foreign exchange rates remained constant from the second quarter of 2005 through the second quarter of 2006, our revenues would have been $18 million higher.

If we assume that Safa R’s (Piper Jaffray) prior estimate is not inflated and that 10% of Google revenues are attributable to geotargeting, that would mean approximately $240 million this quarter vs. approximately $225 million in Q1.

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More coverage: WSJ (sub. req’d), Reuters/USAToday, CNN Money and more from Google News. I have to say that the expectations Google confronts are borderline outrageous. And the growth that Google has shown over the past seven quarters is probably unsustainable over time unless international really kicks in and/or Google diversifies in some way as yet unanticipated (e.g., effective monetization of mobile, multiplatform [offline] advertising, etc.).

I don’t agree with Eric Schmidt’s “limitless growth” remark. But I certainly could be wrong.


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