Google sees stock price soar as Q3 earnings set new pace

Google's stock soared today, a day after news that third-quarter earnings, driven in part by mobile and display advertising growth, were above analyst's forecasts.

The company said it's gross revenue grew 23 percent year-over-year to $7.3 billion, with Google Website revenue up 22 percent year-over-year to $4.8 billion, with strength across most major geographies and verticals. Google CFL Patrick Pichette said AdSense revenue grew 22 percent year-over-year to $2.2 billion, again reflecting continued strength in the Google display network. Pichette said global aggregate paid click growth was up 16 percent year-over-year and also up 4 percent quarter-over-quarter. Aggregate cost per click growth was up 3 percent year-over-year and 2 percent quarter-over-quarter.

Google, also yesterday decided to break out some individual metrics about the business, and about the "great momentum" the company is experiencing.

Google said it is monetizing over 2 billion YouTube views per week, up more than 50 percent from a year ago. The company said it recently launched a new ad format, TrueView, that gives viewers the ability to choose which commercials to watch or they can even skip watching the ad altogether. It said that when advertisers only pay for the commercials people watch, the ads are more valuable to advertisers when they are only paying for viewers who have actually chosen to watch them.

Google also said its display advertising business is on an annualized run rate of over $2.5 billion, not including text ads. The total is for YouTube ads, non-text ads on the Google Display Network, and on the DoubleClick platform.

"Clearly, we are firing on all cylinders in display, the advertisers are running great branding campaigns, the Ad Exchange is taking off, we are partnering very well with agencies, and of course more publishers are making more money," said Jonathan Rosenberg, SVP of product management.

For more:
- see this release
- see the earnings call transcript

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Take a sneak peek at Google TV
Apple TV devices selling out; can Google TV, Roku compete
Google TV and cable looking at partnerships?

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