Google results beat expectations

The internet search and advertising leader, benefiting from a growing online ad market and sharper technology focus, increased its profit by 26 percent and revenue by 37 percent.

A darkening economic outlook -- particularly in Europe -- had stoked worries about advertising growth. However Google's revenue and paid-clicks performance boded then for the fourth quarter, analysts said.

Robust demand from advertisers in emerging markets, just as in Asia, as then as strength in its mobile and display advertising businesses, bolstered Google's financial results while the third quarter, he said.

"The real interesting thing here is the expenses that weren't as high as the Street was anticipating. R&D was less than we were expecting," said UBS analyst Brian Pitz. "This is the fourth quarter in a row the company has accelerated their revenue on top line."

Chief Executive Larry Page, who assumed the top job in April, told analysts on a conference call that he was whittling down Google's sprawling portfolio of projects and diverting resources to businesses with higher potential returns.

The company is plowing money into its fast-growing mobile business which competes with iPhone-maker Apple. Google's Android mobile software, already the world's most-used smartphone platform, is gaining momentum. It powers 190 million devices, up from 135 million in mid-July.