Google: Android revenues are at $1B on annual basis

Giant's Profit Jumps 32% as Users Click on More Search and Display Ads; Hiring Spree Continues

Google shocked analysts on Thursday with a sterling earnings report that showcased the success of its Android operating system. On an annualized basis, Android reaped $1 billion in revenue, compared with $2.5 billion for Google's core display advertising business. Noted Google CEO Eric Schmidt, "Android is much bigger than I could ever have hoped for. Android can become a hugely profitable business for us. Search on mobile will eventually exceed that of PCs ... so, eventually, mobile will be a very, very strong revenue stream in comparison to PCs."

Google also ramped up its hiring and its executives said the company was engaged in a "war for talent." The company added about 1,500 new employees since June and bringing its total workforce to 23,331. In the June quarter, Google added 1,200 people.

Google said its capital expenditures—what it pays for servers, data centers and networking equipment—was $757 million in the third quarter, up from $186 million a year earlier.

Overall, the company reported a third-quarter profit of $2.17 billion, or $6.72 a share, up from $1.64 billion, or $5.13 a share, a year earlier. Revenue was $7.29 billion, up from $5.95 billion a year ago. Google's expenses in the quarter rose 22% from a year ago to $4.74 billion.