Google streaks even further ahead

Google continues to leave its rivals eating dust, after yet another better-than-expected set of results for the three months to September. Can anything stop the search engine juggernaut?

Google beats analysts’ forecasts so regularly that you’d think they’d have learned their lesson by now (pick a number and then add half as much again, we’d suggest), but the US behemoth well and truly exceeded expectations last quarter. Revenue was up a hefty 57% to $4.23bn, nudging profits above the $1bn mark.

A 25% profit margin would be impressive in any industry, but for an internet business it’s nigh-on spectacular – especially given that Google has been investing heavily in new staff and product development. By way of comparison, Amazon (often held up as the other great online success story) made a margin of less than 3% in the second quarter of this year.

Google managed to hit the record numbers by taking even more market share from competitors Microsoft and Yahoo, and by improving the efficiency of its online advertising – according to some estimates it makes twice as much money per search as its rivals. And with more and more advertisers going online, Google is likely to be raking it in for a while yet. As founder Sergey Brin says: even if the company is a one-trick pony, it’s not a bad trick to have.

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