Google: Revenues Grow 57%
Google specializes in Internet search and online advertising. Google reported revenues of $4.23 bn for the quarter ended September 30, 2007, representing a 57% increase over the Q3, 2006 revenues of $2.69 bn. Net profit for the Q3, 2007 was $1.07 bn, as compared to $925 mn in the Q2, 2007. Google-owned sites generated revenues of $2.73 bn or 65% of total revenues in the Q3, 2007. Similarly, AdSense programs clocked in $1.45 bn or 34% of total revenues, and international revenues totaled $2.03 bn, representing 48% of total revenues, for the Q3, 2007.

During the quarter, Google acquired GrandCentral Communications. The company completed acquisition of Postini, a global leader in on-demand communications security and compliance solutions and has more than 35,000 businesses and 10 mn users worldwide. CNN.com entered into an agreement with Google for site-targeted advertising for CNN.com through AdSense. Currently, the stock trades at $644.71.

Baidu: Great Going
Baidu is one of the leading Chinese search engines that provides search in websites, audio files, images and other utilities. Baidu reported revenues of $52.7 mn for the Q2 ended June 30, 2007, compared to $24 mn for the corresponding period in 2006, an increase of 109.4%. The net profit was $18.6 mn, compared to $7.3 mn for corresponding period in 2006, an increase of 142.7%. Online marketing revenues for the Q2 were $52.6 mn, representing an increase of 111.9%. Active online marketing customers stood at 128,000 in the Q2, 2007, representing an increase of 42.2%. Revenue per online marketing customer for the second quarter of 2007 increased to $407.3, representing an increase of 47.6%.

Baidu has tied up with Rock Music Group, an independent Chinese language record label, to provide an advertising-supported online music streaming service. For the third quarter, Baidu currently expects to generate total revenues ranging from $64.6 mn to $66.5 mn, representing a 106% to 111% increase from the corresponding period in 2006. The stock currently trades at $316.11.

InterActiveCorp: Moderate Growth
InterActiveCorp (IAC) is a media group which operates diversified businesses in sectors being transformed by the Internet, online, and offline, including properties such as Ticketmaster and LendingTree. For Q2, the company reported revenue of $1.5 bn, compared to $1.4 bn for the same quarter in the previous year, a growth of 6%. The net profit stood at $96 mn for the Q2, ending 2007, compared to $53.8 mn for the same quarter in the previous year, a growth of 78.4%. Revenues from Ticketmaster were at $302.7 mn, a growth of 3%, compared to the previous year. Similarly, revenues from LendingTree came in at $98.6 mn, a decrease of 9%. Revenues from real estate stood at $15.4 mn, a growth of 2%, and revenues from ServiceMagic stood at $25.3 mn, a growth of 58%, compared to the corresponding quarter in the previous year.

During the quarter, IAC teamed up with Garage Games for the creation of InstantAction.com. Using Garage Games game development tools, InstantAction.com will provide original action games. IAC also launched Ask Mobile GPS, a GPS-enabled lifestyle application featuring Ask.com, Citysearch, and Evite.com, along with location finder and turn-by-turn navigation. The stock currently trades at $28.41.

Yahoo!: Another Moderate Quarter
For the Q3, 2007, Yahoos revenues stood at $1,768 mn, a 12% increase, compared to $1,580 mn for the same period of 2006. The net profit for the Q3, 2007 was $151 mn, compared to $159 mn for the same period of 2006. Marketing services revenues were $1,544 mn for the Q3, 2007, a 13% increase. Revenues from owned and operated sites were $922 mn, an increase of 24%. Revenues from affiliate sites stood at $622 mn, a decrease of 1%, and revenues from fees stood at $224 mn for the Q3, 2007, an increase of 7%.

During the quarter, Yahoo! entered into an agreement to acquire BlueLithium, an online ad network. Similarly, the company also acquired Zimbra, an email and collaboration software company. The company also bagged a multi-year search and advertising distribution agreements from WebMD. The stock currently trades at $29.03.

InfoSpace: In Negative Zone
InfoSpace provides private label search engine and an online directory services. Revenues for the Q2, 2007 were $70.5 mn, a decrease of $25.3 mn, compared to the Q2, 2006. The net loss for the Q2, 2007 stood at $28.1 mn, compared to net income of $1.0 mn in the previous year. Online revenues were $39.7 mn in the Q2, 2007, a decrease of $10.6 mn. Mobile revenues were $30.8 mn in the Q2, 2007, a decrease of $14.7 mn. In the process of restructuring, the company has entered into an agreement to sell its mobile services and online directory business for $135 mn and $225 mn, respectively.

During the quarter, Infospace tied up with seven new online distribution partners, including Free SAS, Internet service providers in France. The company renewed its partnership with Verizon to provide various services for Verizon's Mobile Web 2.0 service. For the Q3, 2007, the Company expects revenue to be in the range of $49-51 mn, and net loss to be in the range of $16.5-17.5 mn. The stock currently trades at $19.05.

LookSmart: Stellar Growth
LookSmart is an online advertising and technology company headquartered in San Francisco, California. For the Q2, 2007, it reported revenues of $14.6 mn, representing a 31% increase from $11.1 mn in the Q2, 2006. The net loss for the Q2, 2007 was $2.1 mn, which includes $0.6 mn of non-cash, share-based compensation charges, compared to a net loss in the Q2, 2006 of $4.4 mn.

During the quarter, LookSmart launched a contextual ad serving and optimization product called AdCenter. The company signed a strategic agreement with blinkx.com, a video search engine, to allow video search results on findarticles.com.

LookSmart also launched a solution for publishers unsold ad inventory known as Platform Backfill. Platform Backfill uses ad network feeds from other publishers using the AdCenter to help increase revenue and bidding activity. For the Q3, the revenue is expected to increase 8-12% from the Q3, 2006. The stock currently trades at $2.64.

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