Google has posted a 38% surge in 1Q profit, as the online advertising market continued to rebound.
The company reported a net profit of $1.96 billion (€1.44 billion), on 23% higher revenue of $6.77 billion.
“Google performed very well in the first quarter, with revenue growth driven by strength across all major verticals and geographies,” Google CFO Patrick Pichette said.
But not all investors were impressed, with the company's stock falling 4.9% to $566.20 following the publication of the results, before rebounding in morning trading.
Investors were also disappointed that CEO Eric Schmidt will no longer take part in quarterly earnings calls, Reuters said.
Google-owned sites contributed to 66% of the company's total revenues, or a combined $4.44 billion – itself a 20% increase over 2009 revenues of $3.69 billion.
A slight majority – 53% - of total revenue was generated from outside the US, with the UK alone contributing to 13% of total revenue. Had foreign exchange rates remained constant, Google's revenue would have been $112 million higher.
Operating expenses grew to $1.84 billion, compared to $1.52 billion in 1Q09, but by percentage of revenue operating expenses actually fell. Traffic acquisition costs totalled $1.71 billion, or 26% of advertising revenues.