Google earnings increases 37% in Q1

Google has posted increased profits in the first quarter of fiscal 2010. The results were higher than many analyst earlier expected. The company’s revenue reached $6.77 billion that was an increase of 23% over the same time in 2009. The profit was $1.96, or $6.06, compared to $1.42 billion, or $4.49 per share, for the the first quarter last year.
The increased was mainly due to an accelerated growth of advertising revenue throughout worldwide. Google’s first quarterly profits were not welcome in the investor circle as the shares of internet giant slumped about 29% or about 5% in after hours trading. However, the share jumped to $595.30 in the day trading after the announcement.

Most revenue comes from Web sites owned by Google, accounting for 66% of the total, while partner sites accounted for 30%. Most of this revenue still comes from advertising. More specifically, the type of search ads pay-per-click.
Historically, searches account for about 80% of total advertising revenue. Google further reported that 15% of people clicked on ads that were more often in the first quarter than the same quarter in 2009. The average click rate was 7% in first quarter of 2009.