Google has again proven its might as it reports its Q1 2010 revenue growth at 23% compared to the same period in 2009. Total reported revenue for the quarter ending March 31 is at $6.77 billion. Traffic Acquisition Cost (TAC) amounted to $1.71 billion or 26% of advertising revenues.
Despite suffering from a decline in stocks prices, Google however managed to beat the Wall Street expectations.
Patrick Pichette, CFO of Google has issued the following statements regarding their first quarter financial report.
“Google performed very well in the first quarter, with 23% year over year revenue growth driven by strength across all major verticals and geographies,” said Patrick Pichette, CFO of Google.
Some key highlights of Google’s Q1 2010 Financial Report are as follow:
Revenues – Google reported revenues of $6.77 billion in the first quarter of 2010, representing a 23% increase over first quarter 2009 revenues of $5.51 billion. Google reports its revenues, consistent with GAAP, on a gross basis without deducting TAC.
Google Sites Revenues – Google-owned sites generated revenues of $4.44 billion, or 66% of total revenues, in the first quarter of 2010. This represents a 20% increase over first quarter 2009 revenues of $3.69 billion.
Google Network Revenues – Google’s partner sites generated revenues, through AdSense programs, of $2.04 billion, or 30% of total revenues, in the first quarter of 2010. This represents a 24% increase from first quarter 2009 network revenues of $1.64 billion.
Paid Clicks – Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our AdSense partners, increased approximately 15% over the first quarter of 2009 and increased approximately 5% over the fourth quarter of 2009.
Cost-Per-Click – Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our AdSense partners, increased approximately 7% over the first quarter of 2009 and decreased approximately 4% over the fourth quarter of 2009.
TAC – Traffic Acquisition Costs, the portion of revenues shared with Google’s partners, increased to $1.71 billion in the first quarter of 2010, compared to TAC of $1.44 billion in the first quarter of 2009. TAC as a percentage of advertising revenues was 26% in the first quarter of 2010, compared to 27% in the first quarter of 2009.