After suffering a rare miss last quarter, Google came back with a solid quarter with earnings coming in at $10.08 a share (non GAAP), on revenue of $10.65 billion for its quarter ending March 31. Analysts had expected Google to post earnings of $9.64 a share, on revenue of $8.1 billion. The company also announced a stock-split proposal that will create a new class of non-voting capital stock, giving investors one new share for each existing share.
Google’s revenue was up 24 percent over the same quarter last year when it brought it $8.58 billion. The company’s GAAP (generally accepted accounting principles) net income was $2.89 billion, compared to $1.80 billion in the first quarter last year.
“Google had another great quarter with revenues up 24% year on year,” said Larry Page, CEO of Google in a statement. “We also saw tremendous momentum from the big bets we’ve made in products like Android, Chrome and YouTube. We are still at the very early stages of what technology can do to improve people’s lives and we have enormous opportunities ahead. It is a very exciting time to be at Google.”
Questions remained about the strength of its search business, which continued to see a decline in cost-per-clicks. Google’s cost-per-click for its ads fell again for the second straight quarter, down 12 percent over the year before and 6 percent down from the previous quarter sequentially. This was a key area of concern for the company last quarter, when it missed the analysts estimates. Analysts wondered if Google was seeing weakness in its core business due to possible weaker smartphone search ad prices.
Google-owned sites generated revenues of $7.31 billion, or 69 of total revenues, up 24 percent increase over the previous year. Revenue from partner sites was $2.91 billion, a 20 percent increase from first quarter of last year. The company’s traffic acquisition costs grew to $2.51 billion compared to $2.04 billion over the same period last year.