So much for a revenue shortfall.
Search giant Google (NASDAQ: GOOG) on Thursday announced second-quarter net income of $2.51 billion, or $7.68 a share, up 36.4 percent from last year's Q2 profit of $1.84 billion, or $5.71 a share. Excluding one-time items, earnings for the quarter ended June 30 were $8.74 a share.
(Also see: Is Google's revenue about to drop?)
Net revenue for Q2 was $6.92 billion, up 1.5 percent from last year's $6.82 billion.
Analysts were expecting the search-market leader and social networking aspirant to post earnings of $7.84 a share on net revenue of $6.54 billion, which would have been 5 percent below last year's Q2 net revenue.
Shares of Google jumped more than 12 percent in after-hours trading to 595.80 from Thurday's closing price of 528.94, before settling back to 583.55 around 5 p.m.
Google's gross revenue for the quarter topped $9 billion. Traffic acquisition costs were $2.11 billion, or 24 percent of ad revenues.
"We had a great quarter, with revenue up 32% year on year for a record breaking over $9 billion of revenue," Larry Page, Google CEO, said in a prepared statement. "I'm super excited about the amazing response to Google+ which lets you share just like in real life."
Just like in real life?
Some earnings highlights:
* Revenues from outside the U.S. were $4.87 billion, or 54% of total revenue, compared to 53% in the first quarter and 52% in last year's Q2.
* Aggregate paid clicks (which include clicks related to ads served on Google sites and the sites of Google's AdSense partners) rose about 18% year-over-year, though they fell 2 percent from the first quarter.
* Traffic acquisition costs, or the revenue Google gives to partners, increased to $2.11 billion from last year's $1.73 billion, but fell as a percentage of advertising revenues to 24% from 26%.
* Net cash from operating activities in Q2 totaled $3.52 billion, versus $2.09 billion in the second quarter of 2010.
* Total cash on hand (cash, cash equivalents, and marketable securities) as of June 30 was $39.1 billion.