International markets continue to drive Google growth

Google's earnings were up for its second quarter, driven by international growth.

International growth and continued overall traffic increases kept Google's earnings in line with analysts' estimates in the search giant's second quarter.

On Thursday, Google reported revenue for the quarter ending June 30 of US$5.37 billion, using generally accepted accounting principles (GAAP), up 39 percent over the same quarter last year.

Earnings per share were lower than expected: Google reported $4.63, compared to the $4.74 that analysts polled by Thomson Financial expected, on a non-GAAP basis.

Revenue from outside of the U.S. represented 52 percent of total revenue for Google, compared to 51 percent in the first quarter. In a recent research report, analysts at Citigroup wrote that international markets represent a notable growth driver for Internet companies like Google, and the analysts expected non-U.S. markets to be responsible for half or more of revenue for Google in the quarter.

Google continues to gain search market share despite the best efforts of its rivals. A recent report from Hitwise showed Google garnering nearly 70 percent of all U.S. searches, while the other leading names in search -- Yahoo and Microsoft -- have lost share.

(More to follow.)

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