Google’s stock price fell 5% as investors saw operating expenses creep up to $2.84bn in the three months to March 2011, compared with $1.84bn in 1Q10.
The company said Q1 net income was $2.3bn (£1.4bn) compared with $1.96bn (£1.19bn) 12 months earlier, with Google-owned sites generating 69% of its total revenues.
Google’s partner sites – through its AdSense programmes – generated revenues of $2.43bn (£1.48bn), equating to 28% of total revenue.
The search giant’s UK revenues hit $969m (£592.6m), representing 11% of total revenue.
Paid clicks increased by approximately 18% over the period, up 4% on Q4 2010, while average cost-per-click increased 8% year-on-year.
Patrick Pichette, Google’s CFO, said, “These results demonstrate the value of search and search ads to our users and customers, as well as the extraordinary potential of areas like display and mobile, which is why we continue to invest.”