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Google Reports Record Revenue; Profits Climb 36%

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Google's revenue climbed 32 percent from a year ago for its second quarter to a record $9.03 billion, the company said. Net income jumped 36 percent.

"We had a great quarter, with revenue up 32% year on year for a record breaking over $9 billion of revenue," said Larry Page, chief executive of Google, in a statement. "I'm super excited about the amazing response to Google+ which lets you share just like in real life."

Google reported net income of $2.51 billion on revenue of $9.03 billion, versus net income of $1.84 billion for the second quarter of 2010, when the company reported revenue of $6.82 billion.

Traffic acquistion costs (TAC) increased from $1.73 billion to $2.11 billion, a 22 percent increase. TAC as a percentage of advertising revenues was 24 percent in the second quarter of 2011, compared to 26 percent in the second quarter of 2010, Google said.

Paid clicks increased 18 percent year-over-year and dropped 2 percent sequentially; cost-per-click increased by 12 percent compared to a year ago.

Revenues from Google Sites increased 39 percent from a year ago to $6.23 billion. That represented 69 of the company's total revenues, it said. partner sites generated $2.48 billion or 28 percent of its revenues, a 20 percent increase from a year ago.

Revenue from outside the United States totaled $4.87 billion, or 54 percent of total revenue, versus 52 percent a year ago.

Google did not offer a forecast for the third quarter.

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