Google (NASDAQ:GOOG) will report its Q1 earnings Thursday, and is expected to continue its upward momentum. Analysts predict a 32 percent gain in year-on-year revenue, boosted by rapid growth in mobile technology.
In addition to being the world’s most-used search engine, the Mountain View, Calif., company also owns the world’s No. 2 search engine (YouTube), a lucrative advertising platform and the world’s most-used mobile operating system (Android). Thursday’s report is expected to show a net income of $3.57 billion, or $10.69 per share, a 23 percent increase from the previous year’s report of $2.89 billion, or $10.08 per share.
Google’s revenue of the quarter is projected to reach $14 billion, according to a Thomson Reuters poll of Wall Street analysts. That’s up from $10.65 billion in the first quarter of 2012.
Several factors contribute to Google’s continuing profitability. The Android operating system is now believed to power 70 percent of the smartphones in the world. In addition to selling this software, Google gains greater exposure to its primary revenue stream: advertising. The new focus on Enhanced Campaigns is also making the advertising platform more valuable than ever.
The increased use of Google’s mobile products is also expected to increase revenue from products sold through the Google Play Store.
An important thing to note in the upcoming report is revenue from Motorola, and how much it adds to the bottom line after Google acquired it in May 2012.
Originally from Northern California, Ryan W. Neal came to New York to earn his master's in journalism from Columbia University. He joined IB Times April 2013, and is a writer...