Google Inc’s Profit Registers 17% Growth During January-March 2011 Quarter

Posted on April 16, 2011, 12:48 pm, by Arup Choudhury.

A rise in online advertising revenue has helped Google Inc to register 17% growth in its net profit to $2.3 billion during the January-March quarter 2011. A year ago during the same period the search engine giant had registered a profit of $ 1.96 billion. Meanwhile revenues of Google rose by 27% to $ 8.58 billion in the first quarter of 2011 from $ 6.77 billion during the same period a year ago. Patrick Pichette, Google CFO said that the company had a great quarter and results show the value of search and search ads to the users and customers.

Past Investments Proved Important

Mr Pichette also said that the past investments by the company have been crucial to the company’s success. The owned sites of Google generated revenues of $ 5.88 billion during the January-March quarter which represents an increase of 32% over the first quarter revenues of 2010 which stood at $ 4.44 billion.

Meanwhile, due to higher marketing expenses along with increased labor cost escalated Google’s operating expenses by nearly 54% thereby reducing its operating margin to 33%. Google also hired more than 1900 new employees during the first quarter of 2011 which took its overall employee strength to more than 26,300.