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Google posts 31 percent jump in sales

19 Apr 2013
google logo headquarters sign search engine seo

Search giant Google posted a strong start to its financial year, with first quarter revenues hitting £13.97bn, up 31 percent year-on-year. 

Profits were up to, hitting $3.35bn for the three months ending 31 March, compared to £2.89bn in the year-ago quarter.

The vast majority of Google's income came from its online business, with its websites delivering $8.64bn in revenues - up 18 percent year-on-year. Meanwhile, Google's $12.5bn Motorola acquisition accounted for a measly $1.02bn in revenues.

"We continue to be very pleased with the progress with Motorola Mobility," said Google's chief financial officer Patrick Pichette.

"We are very pleased with the progress but I must remind everyone that growth will continue to be slow."

During the company's call with investors, Google co-founder Larry Page put the focus on future products. He highlighted the firm's commitment to developing products that may not hold much value in the near term.

"As [chief executive officer] it's important to not get comfortable. A big part of my job is to get involved in things that are not just incremental," said Page during the call.

"Companies tend to get comfortable doing what they've always done. It's only natural to work on the things you know. [However,] minor changes make things obsolete."

Page held steadfast to Google's philosophy of investing in products for the future. Specifically, he highlighted Google's efforts in developing self-driving carsGoogle Fiber, and Google Glasses.

"I get chills when I use something for the future and I get chills when I use Google Glass," continued Page.

Google's Pichette also said that mobile will continue to be a major growth business for Google going forward. Pichette said that the multi-screen world of today offers Google many advertising opportunities going forward.

"It's really about the new reality of multi-screen. It's about this new unified life with multiple screens throughout your day," continued Pichette.

"This trend represents an enormous opportunity for us."

Speaking on ads, Google's founder reminded investors why it had been so successful at monetising ads. During the earnings call Page said the secret is to think of ads as information the public wants to see.

"We have been doing this for a long time the reason we are such a success at advertising is because we view ads as information," said Page.

"Our search ads have to be very specific to what you are looking for."

Google ads have been the company's lifeblood since the beginning. The firm has continued to see a large portion of its profits come from advertisements found in its products.

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James Dohnert
About

James is a freelance writer and editor. In addition to ClickZ, his work has appeared in publications like V3, The Commonwealth Club, CachedTech.com, and Shonen Jump magazine. He studied Journalism at Weber State University.

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