Google profits skyrocket as ad sales keeps on growing

Google profits skyrocket as ad sales keeps on growing

Google is doing extremely well when it comes to financial results. Their first-quarter profit increased by nearly six-fold as they crossed every possible expectation in the market by the analysts. The online search engine giant is doing incredible well with their advertisement revenues on the internet.

The company reported that they earned $369.2 million or $1.29 per share for the first three months of the current year. Last year during the same period, the company made $64 million, or 24 cents per share. The total revenues were $1.26 billion, which is almost double of around $651.6 million at the same time last year. Google pays a good amount to their advertisers in their revenue sharing model and after cutting that commission, they made around USD 794.5 million.

The prediction by the market was around 92 cents per share, which is now completely thrashed by Google. The company has beaten the market expectations ever since they went public last year and the price of the share is nearly double of what it was at the launch stage.

The company makes bulk of its revenues from the Adsense advertisement program. It allows the publishers to run content relevant text based advertisements on their sites and earn from the clicks on these advertisements. Similar ads are also run on the Google Search result pages, GMail and some other services of the company.