Google reported strong first quarter earnings that were better than expected, but revenue was a bit light. The company also approved a 2-for-1 stock split, but maintained a structure that leave control with founders Larry Page and Sergey Brin.
The company reported first quarter earnings of $2.89 billion, or $8.75 a share, on revenue of $8.14 billion excluding traffic acquisition costs. Including traffic acquisition costs Google revenue for the quarter was $10.65 billion. Non-GAAP earnings came in at $10.08 a share.
Wall Street expected Google to report first quarter earnings of $9.65 a share on revenue of $8.15 billion excluding traffic acquisition costs.
Cost per click rates were down 12 percent from a year ago. That decline was worse than expected and may reflect more mobile and tablet traffic.
Overall, the company was upbeat about its outlook. CEO Page in a statement called the quarter "great," touted 24 percent revenue growth and momentum of Android, Chrome and YouTube.
On a conference call, Page said that the company has improved its product velocity and has redesigned products throughout.
I've pushed hard to increase our velocity, improve our execution, and focus on the big bets that will make a difference in the world. Google's a large Company now, but will achieve more and do it faster if we approach life with the passion and the soul of a start-up. This has involved a lot of clean-up. We've given many of our products including search, a visual refresh so they now have a more consistent look and feel.
In afterhours trading, investors didn't sweat cost-per-click rates and cheered a stock split.
Key highlights from the conference call:
By the numbers for the first quarter: