INTERNET GIANT Google has posted its financial results for the first quarter of 2011, revealing a 27 per cent increase in revenue compared to the same period in 2010.
The company brought in $8.58 billion in revenue for the first three months of the year, while GAAP operating income was 33 per cent of that at $2.8 billion. Net income was $2.3 billion, up from $1.96 billion a year prior.
Earnings per share came in at $7.04 for GAAP and $8.08 for non-GAAP, up from $6.06 and $6.76 respectively.
Despite the substantial revenue increase, the company failed to meet Wall Street forecasts, primarily due to high spending as it recruited thousands of additional staff. That's not going to slow Google down, however, as it indicated that it expects to "continue to make significant capital expenditures."
Operating expenses were up from $1.84 billion a year ago to $2.84 billion. This accounted for 33 per cent of revenue, compared to 27 percent previously. Much of this boiled down to a 10 per cent pay increase for staff and the hiring of 1,916 new employees. Google now has a workforce of 24,400.
Google also reported that the number of installed apps on Android devices has crossed the three billion milestone. It wasn't all that long ago that it hit the two billion mark, suggesting the momentum for Android is continuing to quicken. In fact, downloads of Android apps have also increased by 50 per cent compared to the last quarter of 2010.
The poorer than expected performance for Google's first quarter led to a drop in its share price of $30.51 or 5.27 percent by market close yesterday. The stock price has improved slightly today with an increase of $2.23 or 0.39 percent to $578.51 before the market opens. µ
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