Google has announced its first quarter 2007 results. Guess what? As ever, there are no surprises this time too. Even this time Google has grown at the same monstrous rate which always belies expectations. According to the report:
- The gross revenue has grown by 63% ($3.66 billion) as compared to the Q1 in 2006
- Net income rose to $1.0 billion form last year's $592 million
- Income per share grew from $1.95 a share to $3.18 per share
- Aggregate paid clicks increased by 52%
Google CEO Eric Schmidt said that "We are ecstatic about our financial results this past quarter…Our core business is very strong. It is the core business that is driving our success."
Google has been consistently outperforming growth predictions. Wall Street Journal had forecasted a growth rate of $2.91 per share. Google bettered that figure with an impressive $3.18 per share. The spectacular quarterly earnings are despite the company’s increased expenditure this year.
Google’s hiring grew by 15% to 12,238. To add to the company’s only significant source of revenues, Google has lately been investing heavily in new ventures. It has only recently acquired DoubleClick for $3.1bn, Tonic Systems and struck a deal with Clear Channel for radio ads.
Google has been strengthening its presence in video, television, radio and print advertising markets. It is worthwhile to mention here that 99% of Google’s earnings are from a single source: on-line advertisements.