Google Inc. (Nasdaq: GOOG), owner of the world’s most popular search engine, reported second-quarter revenue surged 35 percent, helped by its acquisition of Motorola Mobility Holdings.
Including the impact of Motorola Mobility, sales were $12.2 billion, compared with $9.03 billion a year earlier, the Mountain View, California-based company said on its website. Profit before some costs was $10.12 a share. Google’s $12.5 billion acquisition of Motorola Mobility closed in May.
Google has been using ads on mobile devices and the YouTube video site to bolster revenue, and it continues to benefit from user queries on its home page. The company’s search service grabbed more than two-thirds of the U.S. market last month, more than twice the share held by Microsoft Corp. and Yahoo! Inc. combined, according to ComScore Inc.
“Search is clearly still the engine of growth here,” said Kerry Rice, a San Francisco-based analyst at Needham & Co. “Search, in my mind, is the best return on your investment for Internet advertising that exists today.”
Excluding revenue passed on to partner sites and the impact of Motorola Mobility, second-quarter sales were $8.36 billion. Net income was $2.79 billion, or $8.42 a share.
Google rose in extended trading. Google’s shares increased 2.1 percent to $593.06 at the close in New York. They have lost 8.2 percent this year.
Google’s purchase of Motorola Mobility shored up its patent portfolio to better combat legal challenges against its Android mobile software. Motorola Mobility, which has more than 17,000 patents, also helps Google enter the hardware market to compete more directly with Apple Inc. and others.
Android software, which Google offers at no cost to device makers, leads the smartphone market. Google-powered devices accounted for 56 percent of global sales in the first three months of the year, compared with 23 percent for Apple’s iPhone, according to Gartner Inc.
Google is using smartphones to help drive mobile advertising, a new area of growth for the company. Users may see ads when they look at an application or do a query on a Google search service.
The company is also pushing into display advertising, which includes graphical banner ads, on desktops. Google is expected to grab 16.5 percent of the U.S. market this year, trailing No. 1 Facebook Inc., which should have 16.8 percent, according to EMarketer Inc. Google will assume the top spot next year with a 20 percent share, EMarketer projects.