Google profit soars, but key metric declines

Google also announced a novel type of stock split that will allow its founders to maintain their control over the company

Google's profit soared 61 percent in the first quarter, but the average "cost per click" paid to Google by advertisers declined for the second quarter running, the company reported Thursday.

Google's profit for the quarter, which ended March 31, was US$2.89 billion, up from $1.80 billion in the first quarter of 2011. Revenue was $10.65 billion, up 24 percent from the same quarter last year, Google said.

Average cost per click, or the amount advertisers pay Google when users click on their ads, fell by 12 percent year over year. Last quarter the figure declined by 8 percent.

Google has noted that the total number of paid clicks on its ads continues to rise, however. In the first quarter it increased by 39 percent from a year earlier.

Google also announced a novel type of stock split that will increase the volume of its shares on the market without reducing the voting power of its senior managers.

The company will create a new, "non-voting" class of stock to be listed on the Nasdaq stock market. The move amounts to a two-for-one stock split, but the additional shares that will be granted to each shareholder will not increase their voting power.

In a letter to shareholders, Google acknowledged the move might not be popular with everyone.

"But after careful consideration with our board of directors, we have decided that maintaining this founder-led approach is in the best interests of Google, our shareholders and our users," it said.

Cameron Scott covers search, web services and privacy for The IDG News Service. Follow Cameron on Twitter at CScott_IDG.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Cameron Scott

IDG News Service
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?