Google Inc.'s second-quarter earnings were up 19 percent, but revenue slowed as advertising sales were down from the previous quarter.
The search engine giant posted a profit of $1.48 billion, or $4.66 a share, compared with $1.25 billion, or $3.92 a share, in the same quarter last year.
Revenue rose 2.9 percent to $5.52 billion.
Google CEO Eric Schmidt in a statement characterized the company's quarter as very good given the global economic downturn. While most of the world's largest economies shrank, Google's year-over-year revenues were up 3%, he said. These results highlight the enduring strength of our business model and our responsible efforts to manage expenses in a way that puts us in a good position for the economic upturn, when it occurs.
Analysts had expected Google to report revenue of $5.49 billion for the quarter, according to Reuters.
Google's cost cutting brought its operating expenses for the quarter to 28% of revenues, compared to 31% of revenues during the same period in 2008.
Google's U.S. paid clicks were up 15 percent from a year earlier but were down 2 percent from the first quarter.