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10/24/2005
03:20 PM
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Still A Close Race

In the race to be king of the Web, Google Inc. had a good week against its sharpest rival, Yahoo Inc.

Google's quarterly revenue almost doubled from a year ago, to $1.6 billion for the quarter ended Sept. 30. Its net income hit $381.2 million. Yahoo's revenue reached $1.3 billion--up 47% from last year. Yahoo's operating income rose 57%, and its net income came in at $253 million.

chartNearly all revenue for Google and Yahoo comes from ads. Online ads are up 26% to $5.8 billion for the first six months of the year, says the Interactive Advertising Bureau and PricewaterhouseCoopers.

Google's share of the U.S. search market is growing faster than its rivals. Its share rose in September 2.7 percentage points from a year ago, Yahoo slipped 1.7 points, and MSN inched up 0.4 points, according to comScore Networks.

Google is spending what it's earning: R&D accounts for almost 10% of the company's revenue. Says CFO George Reyes, "You should fully expect to see growth in this expense line for the foreseeable future." In the race to be king of the Web, Google Inc. had a good week against its sharpest rival, Yahoo Inc.

Google's quarterly revenue almost doubled from a year ago, to $1.6 billion for the quarter ended Sept. 30. Its net income hit $381.2 million. Yahoo's revenue reached $1.3 billion--up 47% from last year. Yahoo's operating income rose 57%, and its net income came in at $253 million.

chartNearly all revenue for Google and Yahoo comes from ads. Online ads are up 26% to $5.8 billion for the first six months of the year, says the Interactive Advertising Bureau and PricewaterhouseCoopers.

Google's share of the U.S. search market is growing faster than its rivals. Its share rose in September 2.7 percentage points from a year ago, Yahoo slipped 1.7 points, and MSN inched up 0.4 points, according to comScore Networks.

Google is spending what it's earning: R&D accounts for almost 10% of the company's revenue. Says CFO George Reyes, "You should fully expect to see growth in this expense line for the foreseeable future."

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