A summary of Google's results for the second quarter of 2006:
Google reported revenues of $2.46 billion for the quarter ended June 30, 2006, an increase of 77% compared to the second quarter of 2005 and an increase of 9% compared to the first quarter of 2006. Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs, or TAC. In the second quarter of 2006, TAC totaled $785 million, or 32% of advertising revenues.
One interesting fact is from the highlights below,Google Sites Revenues - Google-owned sites generated revenues of $1.43 billion, or 58% of total revenues. This represents a 94% increase over second quarter 2005 revenues of $737 million and a 10% increase over first quarter 2006 revenues of $1.30 billion.
Google Network Revenues - Google's partner sites generated revenues, through AdSense programs, of $997 million, or 41% of total revenues. This is a 58% increase over network revenues of $630 million generated in the second quarter of 2005 and a 7% increase over first quarter 2006 revenues of $928 million.
International Revenues - Revenues from outside of the United States contributed 42% of total revenues, compared to 42% in the first quarter of 2006 and 39% in the second quarter of 2005. Had foreign exchange rates remained constant from the first quarter through the second quarter of 2006, our revenues would have been $26 million lower. Had foreign exchange rates remained constant from the second quarter of 2005 through the second quarter of 2006, our revenues would have been $18 million higher.
Adsense revenues accounted for 41 percent of total revenues at about a Billion Dollars, $997 Million. And note that the total acquisition cost is $785 Millions, (TAC is the portion of revenue shared with google's partners and or the adsense publishers) whicj means that Google is sharing major chunk of adsense revenues with its partners now, unlike everybody believed, and harped about how Google keeps major chunk of the adsense revenues, and google unwillingness to be transparent in sharing of the revenues. The TAC is almost 79% of revenues. Which means partners are getting more than google for each Click on the adsense, and keeping 20% for getting the advertisers is a very fair share, I'd say. Google fan that I am, I keep telling that Google is not evil after all.