While competitor Yahoo, reporting a 38% drop in revenue, echoes doubt about the sustainability of online advertising, Google is rolling out the barrel. Google reports that its third quarter revenue has risen to $2.69 billion. That amounts to 70% greater than 2005, and 10% more than last quarter, exceeding Wall Street expectations. $1.63 billion of that came from ads on Google-owned sites, while $1.04 came from its AdSense program. 44% of revenue came from non-US sources. The revenue jump caused Google’s net income to increase by 92%.
Google CEO Eric Schmidt attributes the recent success to a number of factors, including strategic partnerships. “We were particularly pleased with the contributions of our international business in a seasonally weaker quarter. In addition, we continued to forge significant partnerships with companies such as eBay, Fox Interactive Media, and Intuit that will be of great value to all involved.”
He also called the purchase of YouTube the “ultimate partnership” in a conference call to analysts and emphasized the importance to Google of video advertising and partnerships with video content providers.