Google beats analyst’s predictions with record $9bn Q2 revenues

Google has reported record-breaking second-quarter gross revenues of over $9bn in what is traditionally a slow period for the company.

Overall gross revenues rose 32 per cent on the quarter, 69 per cent of which came from Google's own sites. Profits reached $3.3bn, but chief executive Larry Page told analysts that Google has only started to unlock its full potential.

"There are more opportunities for Google than ever before. We're still in the very early stages of what we want to do," he said.

"Even in search there have never been more important changes to make than now. We're only at one per cent of what's possible. Google's just getting started."

Around 54 per cent of Google's Q2 revenues came from outside the US, and the UK performed particularly well, rising 22 per cent to $976m driven by an increase in small business advertising.

Page said that early field trials of the Google+ social networking system had proved very positive. Some 10 million people signed up to the invitation-only trial, and over one billion items are shared and received every single day.

Google's Plus One buttons are spreading fast, Page reported, with 2.3 billion clicks on the button every day and an increase in the number of sites using the feature. The button results are also being integrated into search engine results.

Android is also doing well, according to the figures. The operating system is seeing over 550,000 new phone activations a day, and the Android Market has logged more than six billion downloads.

There are now over 400 different handsets using Android, with 231 carriers in 123 countries. Page claimed this momentum shows that the legal battles over Android are having little effect.

"Android's velocity is only increasing, despite the efforts of our competitors. There's no slowdown of that," he said.

Page added that the internal reorganisation at Google is proceeding apace as the company slims down and focuses on three core product lines: the central search and advertising business; customer-facing projects like Android, Chrome and YouTube; and Google+, commerce and local business.

Google will continue to fund side projects, such as its driverless vehicle, but the vast majority of money is spent on the core business and that will remain the case, Page said.