Google Inc.'s core Internet business boosted revenue 21 per cent in the second quarter, while its recently acquired Motorola Mobility business raised Google's overall revenue to $12.21-billion.
Shares of Google were up 3 per cent at $609 in after-hours trading on Thursday.
Google, which recently acquired hardware maker Motorola Mobility, posted overall revenue of $12.2-billion for the quarter and net income of $2.79 -billion, or $8.42 per share, on a consolidated basis.
"Search demand in the U.S. search was pretty solid, and despite economic challenges in Europe, I'm getting the sense that search demand was not too bad there," said Needham & Co analyst Kerry Rice.
The cost per click for Google's online search ads continued to decline in the second quarter, falling 16 per cent year-on-year, while the overall number of clicks on its ads increased 42 per cent.
Google, the world's No. 1 Web search engine, closed its $12.5-billion acquisition of Motorola in mid-May, giving the company a foothold in the fiercely competitive smartphone hardware business, dominated by companies such as Apple Inc. and Samsung.
Motorola reported an operating loss of $233-million in the second quarter, on revenue of $1.25-billion.
Google said revenue for its existing Internet business totaled $10.96 billion in the quarter, compared with $9-billion a year earlier.
The cost-per-click for Google's online search ads continued to decline in the second quarter, falling 16 percent year-on-year, while the overall number of clicks on its ads increased 42 per cent.
Cost-per-click "was down more than I expected, but this could be a trough, since we did see a sequential uptick," Mr. Rice added. "We may have hit the bottom here."