Google’s Profit Soars 32% and Beats Expectations

Google has announced a 32% increase in profit for the second quarter of 2011, reaching revenues of US$9.03 billion with operating expenses increasing by 49% to US$2.97 billion.

Eric Schmidt, Executive Chairman at Google, said that ‘Google rocked in 2010’ telling investors that ‘core businesses [search and advertising] growing at a very healthy rate and new businesses growing even stronger [Android, Chrome and YouTube etc.]’ With the announcement of Google+, it is likely that social business increase through advertising.

Innovation is also increasingly becoming an important part of Google. Eric Schmidt saying ‘we are making improvements to search at a rate that is the faster we [have] ever’ adding that they crawled 8 times more than two years ago. He emphasized privacy when used search history to deliver search results saying it was only ‘with your permission.’

The increase in operating expenses came after the company increased staff with 2452 staff during this quarter and a further 1916 staff during the first quarter. When questioned during that 2011 Annual Stockholder’s Meeting, said Larry Page, Google CEO, that the company was still functional in size  and said ‘we have moved the product areas of the company up and level’ adding that they didn’t talk a lot about internal structure.

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