UPDATED 14:48 EDT / JULY 14 2011

Larry Page Appearance During Q2 Earnings Call Restores Faith in Google, Shares Soar

Google had its earnings call today for the second quarter of the 2011 fiscal year, and it surpassed Wall Street expectations. The search giant reported $6.92 billion in net revenue with on-GAAP earnings per share of $8.74. That exceeds analysts’ predictions of $6.54 billion in revenue and $7.87 earnings per share. Their net income was $2.85 billion, or $8.74 per share, compared to $2.08 billion in the same period last year.

Google head Larry Page’s official comment:

“We had a great quarter, with revenue up 32% year on year for a record breaking over $9 billion of revenue. I’m super excited about the amazing response to Google+ which lets you share just like in real life.”

This growth rate and the fact that Page, Google’s newly reappointed CEO, attended the earnings call restored some investors confidence in the company.  Google’s shares dropped about 9 percent in the past year due to a number of concerns, but today, its stock shot up by over 10 percent in after-hour trading.

A Google executive that attended the call then broke down Q2 earnings. International sales totaled $4.87 billion or more than half of second quarter revenue, and operating expenses were up 3 percent at 33 percent or $2.97 billion compared to 29 percent or $1.99 billion last year.

Paid clicks increased 18 percent year-over-year, but decreased 2 percent of last quarter. Google’s mobile business has been doing well too – about 135 million Android devices were activated, on average 550,000 a day, and 6 billion apps were downloaded by users of the mobile OS.

Google+ was also a highlight of the earnings call, and Page released some numbers on the weeks-old Facebook competitor. The social network already gained itself 10 million users, who shared over 1 billion items.


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