Google’s shares have come in higher than expected, with a net income increase of 32% for the third quarter.  That’s a jump to $2.17 billion, with shares increasing $6.72 from this time last year.  Google’s third-quarter profit was $7.64 per share, with Google noting its revenue climbed 23% to $7.29 billion.  Net revenue, excluding commissions paid to advertising partners, was $5.48 billion, up from $4.38 billion last year.

This exceeds analysts’ expectations, which projected an adjusted income of $6.67 per share, and a net revenue of $5.2 billion.

“Our core business grew very well, and our newer businesses, particularly display and mobile, continued to show significant momentum,” Eric E. Schmidt, Google’s chief executive, said in a statement. “Going forward, we remain committed to aggressive investment in both our people and our products as we pursue an innovation agenda.”

This validates Google’s investments and R&D efforts in the past year, which have taken several new directions in the company’s efforts to branch its search functions off in as many services as possible.  Layering in other hobbies like testing self-driving cars just reminds us of the many, many ways in which Google intends to infiltrate our lives moving int the future.

The importance of Google’s core business

Google’s search business actually improved for Q3 as well, with paid clicks on ads for Google sites and sites running google ads growing 16% compared to this time last year, with a 4% increase from Q2.

That’s also a good sign for Google initiatives like Google Instant and mobile advertising, which have the potential to revolutionize search marketing.  Of course, this is Google’s plan, so seeing improvements in search is a good sign moving forward.  Marissa Mayer’s move is a testimony to this sentiment, as she shifts from VP, Search Products to head Local and Localization.

Google’s success undoubtedly brings some opposition.  Oracle and IBM are taking a combined stand against Android, threatening to slow down its development as a platform anticipating $10 billion in revenue per year.  For search in particular, Google’s recent changes have had to take a more personalized approach to become relevent.  This is a tactic Facebook is also striving towards, with a recent partnership with Microsoft Bing for instant personalization queries.