Google’s Q1 revenue rises 93% to $1.26 billion
With its strong market share in the booming Internet paid-search market, Google Inc.’s revenue rose 93% to $1.26 billion for the first quarter ended March 31, up from $651.62 million in the year-ago period. Net income rose 476% to $369 million, up from $64 million a year ago, the company reports.
Google said 52% of its Q1 revenue, or $657 million, was generated by its own web sites, and that 47%, or $584 million, came from Google’s partner sites through its AdSense programs.
It said its traffic acquisition costs, or the portion of revenues shared with partners, rose 70.5% to $462 million from $271 million a year ago.
Safa Rashtchy, senior Internet analyst and managing director of investment firm Piper Jaffray & Co., said in a report on Google this week that he estimates Google has more than a 50% share of the global paid-search market. He projects the global market will rise to $22 billion in 2010 from $7.5 billion this year.
But paid search is only the beginning for Google, Rashtchy said. He expects Google to continue generating “significant” revenues over the next five years through several new market segments including mobile communications and an advertising network that leverages the Google brand beyond Internet search.
Google’s stock traded on Friday at around $216, up about $12 on Thursday.
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