Google Q3 Earnings Released, $9.72 Billion in Revenue

Google has released its earnings report for the third quarter, beating expectations.

This includes $9.72 billion for the quarter, a 33% year-over-year increase. Larry Page also included a Google+ stat update.

“We had a great quarter,” said Larry Page, CEO of Google. “Revenue was up 33% year on year and our quarterly revenue was just short of $10 billion. Google+ is now open to everyone and we just passed the 40 million user mark. People are flocking into Google+ at an incredible rate and we are just getting started!”

Google-owned sites generated revenues of $6.74 billion. Google’s AdSense partners generated $2.60 billion (27% of total revenues). Revenues from outside of the U.S. totaled $5.3 billion (55% of total revenues).

Paid clicks increased about 28% year-over-year and 13% quarter-over-quarter. Average cost-per-click increased about 5% year-over-year and decreased by 5% quarter-over-quarter.

As of September 30, cash, cash equivalents, and short-term marketable securities totaled $42.6 billion.

Google had 31,353 full-time employees as of the same date. That’s up from 28,768 June 30.

Here is the release in its entirety:

MOUNTAIN VIEW, Calif. – October 13, 2011 – Google Inc. (NASDAQ: GOOG) today announced financial results for the quarter ended September 30, 2011.

“We had a great quarter,” said Larry Page, CEO of Google. “Revenue was up 33% year on year and our quarterly revenue was just short of $10 billion. Google+ is now open to everyone and we just passed the 40 million user mark. People are flocking into Google+ at an incredible rate and we are just getting started!”

Q3 Financial Summary

Google reported revenues of $9.72 billion for the quarter ended September 30, 2011, an increase of 33% compared to the third quarter of 2010. Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs (TAC). In the third quarter of 2011, TAC totaled $2.21 billion, or 24% of advertising revenues.

Google reports operating income, operating margin, net income, and earnings per share (EPS) on a GAAP and non-GAAP basis. The non-GAAP measures, as well as free cash flow, an alternative non-GAAP measure of liquidity, are described below and are reconciled to the corresponding GAAP measures at the end of this release.