CFO Patrick Pichette credits growth internationally and vertically for these strong financials. "Going forward, we remain committed to heavy investment in innovation," he stated in a release, "both to spur future growth in our core and emerging businesses as well as to help build the future of the open web.”
Google-owned sites, which account for 66% of Google's revenue, saw a 20% YOY revenue increase to $4.44 billion. The company's second largest source of revenue -- partner site revenue generated through AdSense -- makes up around 30% of revenue. Earnings for AdSense were up 24% to $2.04 billion at the end of Q1 2010. Revenue from outside of the U.S., which makes up 53% of total revenue, came to $3.58 billion for the quarter.
Acquisitions
This quarter, Google made a few high profile acquisitions. Funds for strategic acquisitions comes from free cash flow, which was $2.35 billion in the first quarter of 2010.
In February, the company inked a deal to acquire Aardvark for a reported $50 million. Later that month, Google snapped up mobile email search utility reMail; the terms of the deal were not disclosed. In March, Picnik was added to the fold; again, the purchase price was not reported. Also last month, the company bought DocVerse, a Microsoft Office collaboration tool.
Highlights
Paid clicks increased by around 15% YOY.
Cost-per-click increased by about 7% YOY.
In Q1, Google spent around $239 million on data centers, servers and other infrastructure expenses. "We expect to continue to make significant capital expenditures," stated the release.
The company's foreign exchange risk management program added $10 million to revenues in Q1 2010, down from $15.4 million YOY.
Google has added 786 employees globally so far this year, bringing its worldwide workforce to a staggering 20,621.
Image courtesy of iStockphoto, tforgo