Google's Q2 Sales Double | Adweek Google's Q2 Sales Double | Adweek
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Google's Q2 Sales Double

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NEW YORK Google continued to grow its online advertising business sharply in the second quarter, nearly doubling sales to $1.4 billion and generating $343 million of net income, more than a fourfold increase from a year earlier.

The Mountain View, Calif.-based Internet company said its own sites grew faster than those of its partners, which include Ask Jeeves and AOL. Revenue from Google sites grew 115 percent from a year earlier, while network sites saw 82 percent growth. Google's sites produced $737 million of revenue, or 53 percent of the company's total sales. Google network sites generated $630 million of revenue, or 46 percent.

Excluding fees paid to distribution partners, Google's revenue was $890 million.

Even after what its executives described as a surprisingly strong first quarter, Google continued to grow. Its sales, excluding partner fees, were up 12 percent sequentially.

The strong performance in search stands in contrast to Yahoo, which yesterday said its search business was mostly flat due to fewer searches in the second quarter. Yahoo's brand advertising business grew strongly.

Google continued to invest heavily in research and development. It spent $95.8 million on R&D in the quarter, a 109 percent increase that outpaced its 97 percent revenue growth.

Keeping with its practice, Google did not provide future financial forecasts.