Google has announced record-breaking revenues for the second quarter of 2011.

“We had a great quarter, with revenue up 32% year on year for a record breaking over $9 billion of revenue,” says Larry Page, CEO of Google. “I'm super excited about the amazing response to Google+ which lets you share just like in real life.”
Google reported revenues of $9.03-billion for the quarter ended June 30, 2011, an increase of 32% compared to the second quarter of 2010. Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs (TAC). In the second quarter of 2011, TAC totaled $2.11-billion, or 24% of advertising revenues.
GAAP operating income in the second quarter of 2011 was $2.88-billion, or 32% of revenues. This compares to GAAP operating income of $2.37-billion, or 35% of revenues, in the second quarter of 2010. Non-GAAP operating income in the second quarter of 2011 was $3.32-billion, or 37% of revenues. This compares to non-GAAP operating income of $2.67-billion, or 39% of revenues, in the second quarter of 2010.
GAAP net income in the second quarter of 2011 was $2.51-billion, compared to $1.84-billion in the second quarter of 2010. Non-GAAP net income in the second quarter of 2011 was $2.85-billion, compared to $2.08-billion in the second quarter of 2010.
GAAP EPS in the second quarter of 2011 was $7.68 on 326-million diluted shares outstanding, compared to $5.71 in the second quarter of 2010 on 322-million diluted shares outstanding. Non-GAAP EPS in the second quarter of 2011 was $8.74, compared to $6.45 in the second quarter of 2010.
Non-GAAP operating income and non-GAAP operating margin exclude the expenses related to stock-based compensation (SBC). Non-GAAP net income and non-GAAP EPS exclude the expenses related to SBC and the related tax benefits. In the second quarter of 2011, the charge related to SBC was $435 million, compared to $309-million in the second quarter of 2010. The tax benefit related to SBC was $91-million in the second quarter of 2011 and $70-million in the second quarter of 2010.
Google reported revenues of $9.03-billion in the second quarter of 2011, representing a 32% increase over second quarter 2010 revenues of $6.82-billion.
Google-owned sites generated revenues of $6.23-billion, or 69% of total revenues, in the second quarter of 2011. This represents a 39% increase over second quarter 2010 revenues of $4.50-billion.
Google’s partner sites generated revenues, through AdSense programs, of $2.48-billion, or 28% of total revenues, in the second quarter of 2011. This represents a 20% increase from second quarter 2010 network revenues of $2.06-billion
Revenues from outside of the United States totaled $4.87-billion, representing 54% of total revenues in the second quarter of 2011, compared to 53% in the first quarter of 2011 and 52% in the second quarter of 2010.
Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of AdSense partners, increased approximately 18% over the second quarter of 2010 and decreased approximately 2% over the first quarter of 2011
Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of AdSense partners, increased approximately 12% over the second quarter of 2010 and increased approximately 6% over the first quarter of 2011
Traffic Acquisition Costs, the portion of revenues shared with Google’s partners, increased to $2.11-billion in the second quarter of 2011, compared to TAC of $1.73-billion in the second quarter of 2010. TAC as a percentage of advertising revenues was 24% in the second quarter of 2011, compared to 26% in the second quarter of 2010.
Other cost of revenues, which is comprised primarily of data center operational expenses, amortization of intangible assets, content acquisition costs as well as credit card processing charges, increased to $1.06-billion, or 12% of revenues, in the second quarter of 2011, compared to $735 million, or 11% of revenues, in the second quarter of 2010.
Operating expenses, other than cost of revenues, were $2.97-billion in the second quarter of 2011, or 33% of revenues, compared to $1.99-billion in the second quarter of 2010, or 29% of revenues.