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Google smashes analyst expectations with 31 percent revenue climb

Cites ads and mobile as the breadwinners
Fri Apr 19 2013, 10:26
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INTERNET GIANT Google announced its first quarter 2013 results on Thursday, smashing analyst forecasts with a 31 percent increase in revenues.

Google reported first quarter revenues of $13.97bn, up 31 percent year on year. However, this was down slightly from Google's third and fourth quarter 2012 revenues of $14bn and $14.42bn - although the first quarter is typically known as the weakest for most firms. 

Thanks to these bumper revenues, Google's profits soared to $3.35bn, an impressive 16 percent increase.

"We had a very strong start to 2013, with $14.0 billion in revenue, up 31 [percent] year on year," said Google CEO Larry Page. "We are working hard and investing in our products that aim to improve billions of people's lives all around the world."

Google said that its revenue increase was due to its growing ad revenues, which rose to $8.46bn, up 18 percent year over year. The web giant reported that the total number of paid clicks was up 20 percent compared to the first quarter last year, and up a modest three percent compared to the fourth quarter.

The firm said it will focus on mobile ads going forward as people continue to switch laptops and PCs for smartphones and tablets. During the earnings call Page said the secret is to think of ads as information that the public wants to see.

"We have been doing this for a long time the reason we are such a success at advertising is because we view ads as information," said Page. "Our search ads have to be very specific to what you are looking for."

Ads aside, the Google Play store also raked in some money for the company. Listed under "other revenues" in the firm's quarterly report, it brought in $1.05bn in revenue, a 150 percent increase year on year.

Motorola, on the other hand, didn't make much money for Google, bringing in just over $1bn for the quarter. Google didn't seem too concerned, having recently spoken of some "amazing" products that the smartphone maker has in the works.

"We continue to be very pleased with the progress with Motorola Mobility," said Google CFO Patrick Pichette. "We are very pleased with the progress but I must remind everyone that growth will continue to be slow."

Looking forward, Google said the firm will continue to focus on new products, including its controversial Google Glass eyewear, which it announced will run Android during the earnings call on Thursday.

"I get chills when I use a product that is the future, and that happens when I use Glass," Page said. µ

 

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