Google defied analyst expectations today by announcing a 37% increase in revenue for the first quarter of 2010 and 23% year-over-year growth. Google’s CFO Patrick Pichette told analysts on a call this morning that advertising was clearly waxing after a waning that almost looked like a permanent eclipse to many.
Net income rose to $1.96 billion ($6.06 a share) from $1.42 billion ($4.49) last year.
After-hours trading saw the company’s stock nose down 5%, despite the gain. The decline might be a result of fear that Google, which was known to spend freely, perhaps too much so, before the downturn was right back at it.
The increase in revenue had its parallel in operating expenses. Higher payrolls, increased advertising expenses and acquisitions were responsible, all of which the company plans on continuing throughout the year. Hiring for 2009 dipped but 2010 is likely to be a different story.
The fact that Google’s purchase of mobile ad network AdMob is currently under review by the Federal Trade Commission may have also contributed to the restraint of the market.
Bottom photo by Franco Folini
