Google co-founder Larry Page , replaced Eric Schmidt, CEO of Google for the last decade, during the beginning of the quarter.
Many investors were fretting over whether the company would continue to thrive under Page’s leadership.
However Page has put all skepticism to rest, and even Wall Street has not failed to show their exuberance regarding Page’s performance.
Google shares increased by $52.69, or 10%, to $581.63 in extended trading (also called after-hours trading, generally between 4 PM – 8 PM). This was after the shares finished at $528.94 during the regular trading session (generally between 9.30 AM – 4 PM).
Google Inc.’s share prices hit $7.68 per share, earning the company $2.5 billion in all, during the April-June period. This was a 36% increase from $1.84 billion, when the value per share was $5.71, around a year back. Google says that if they didn’t have to incur costs for covering employee stock, it would have earned $8.74 per share. This surpassed many analysts’ predictions of Google’s per share value being $7.84.
Revenue of Google Inc. increased by 36% to $9 billion. This is the highest revenue that Google has earned in a single quarter during the last 13 years. After subtracting advertising commissions, the revenue stood at $6.9 billion, which still surpassed many analysts’ predictions by a good $400 million.
The major contributor towards Google’s increased revenue has been advertisements. A large number of advertisers were willing to pay more to have their ads featured on the internet’s largest marketing network. Aside from this, price paid per advertisement rose by 12% and the number of people clicking on ads rose by 18%. These combined advertising aspects resulted in Google’s higher revenue.
Not only has Larry Page delivered outstanding results, he has also stood by his promise to bring in more engineering talent and invest heavily in more data centers. The objective of this is to allow Google to expand into new fields and earn even higher revenues in the future. An example of this is Google’s latest venture in the social-networking field- Google Plus. Google Plus made its debut about three weeks back and has received positive reviews thus far, and already has more than 20 million ‘active’ users.
In the second quarter, Google added 2,453 employees, inclusive of 450 workers inherited as part of the company’s $700 million purchase of airline fare tracker ITA Software.
With the ITA Software, Google hopes to give consumers more choices and better ways to search for plane tickets as it incorporates ITA technology, which powers the reservation systems of most major U.S. airlines.
Guest-Editor – ‘Pongal Eknomizt’