Google
Google homepage logos are seen on a wall at the Google campus near Venice Beach, in Los Angeles, California January 13, 2012.Reuters

Defying Wall Street worries that the gloomy world economy would take a toll on the company's online advertising, Google Inc. on Thursday reported consolidated revenues of $12.21 billion for the quarter ending June 30, 2012, an increase of 35 percent compared to the second quarter of 2011. 

Google homepage logos are seen on a wall at the Google campus near Venice Beach, in Los Angeles, California January 13, 2012.
Google homepage logos are seen on a wall at the Google campus near Venice Beach, in Los Angeles, California January 13, 2012.

The increase in revenue comes in the wake of acquiring Motorola Mobility Holdings in May and the launch of Google Nexus 7 tablet in late June.

"Google standalone had a strong quarter with 21% year-on-year revenue growth, and we launched a bunch of exciting new products at I/O - in particular the Nexus 7 tablet, which has received rave reviews," said Larry Page, CEO of Google. "This quarter is also special because Motorola is now part of the Google family, and we're excited about the potential to build great devices for users."

CFO Patrick Pichette noted, "We can expect Motorola to continue to show some accounting variability, as is typical with the closing of such large transactions."

Google's second quarter 2012 financial results, which were released on Thursday, showed that the search giant earned a 21 percent revenue increase from Internet business.

Google's revenues from advertising and other were $10.96 billion, or 90 percent of consolidated revenues, in the second quarter of 2012, representing a 21 percent increase over second quarter 2011 revenues of $9.03 billion.

Google Inc. reported its revenues, consistent with Generally Accepted Accounting Principles (GAAP), on a gross basis without deducting traffic acquisition costs (TAC). In the second quarter of 2012, TAC totaled $2.60 billion, or 25 percent of advertising revenues.

GAAP operating income in the second quarter of 2012 was $3.20 billion, or 26 percent of revenues. This compared to GAAP operating income of $2.88 billion, or 32 percent of revenues, in the second quarter of 2011. Non-GAAP operating income in the second quarter of 2012 was $3.95 billion, or 32 percent of revenues. This compared to non-GAAP operating income of $3.32 billion, or 37 percent of revenues, in the second quarter of 2011.

GAAP net income in the second quarter of 2012 was $2.79 billion, compared to $2.51 billion in the second quarter of 2011. Non-GAAP net income in the second quarter of 2012 was $3.35 billion, compared to $2.85 billion in the second quarter of 2011.

GAAP earnings per share (EPS) in the second quarter of 2012 was $8.42 on 331 million diluted shares outstanding, compared to $7.68 in the second quarter of 2011 on 326 million diluted shares outstanding. Non-GAAP EPS in the second quarter of 2012 was $10.12, compared to $8.74 in the second quarter of 2011.

It may be recalled that Google acquired Motorola Mobility Holdings for $12.5 billion in May this year. It also acquired consumer internet company Meebo for about $100m with an aim to expand its social networking service Google Plus.