Google smashes forecasts with 32pc rise in revenue

SHARES in search giant Google surged in after-hours trading yesterday as it posted forecast-beating revenue and profit growth over the past three months.

Revenues rose 32 per cent in the quarter to June to pass $9bn (£5.6bn) for the first time, while pre-tax profit jumped 36 per cent to $3.1bn, from $2.4bn in the same period in 2010.

Earnings per share came in at $8.74, above consensus analyst expectations of $7.85, driving Google’s shares up more than 12 per cent in after-hours trading

But its costs – a bone of contention with investors in the past – continued to grow. Both research and development costs, and sales and marketing expenses, jumped to over $1bn in the quarter compared with 2010, causing a 38 per cent rise in total costs to a new high of $2.88bn.