Search Engine Marketing, Search Engine Optimization and Search Engine Positioning Weekly Free Newsletter, April 22, 2006 edition

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(Continued) The RFS Newsletter, Apr. 22, 2006. Page 6
Google reports first-quarter sales and earnings that are substantially higher than Wall Street's estimates. Shares of Google increased nearly 6 percent in extended-hours trading, according to Inet. The stock had moved up 1.1 percent in regular trading on the Nasdaq Thursday. Google's results are the latest indication of just how strong the online advertising market is. Yahoo, Google's top rival, reported strong first-quarter sales and earnings on Tuesday. Both companies are benefiting from robust demand for ads tied to specific keyword search queries but Google depends almost entirely on this market for its sales and profits.

Revenues for Google were $2.25 billion, up 79 percent from a year earlier. Excluding traffic acquisition costs (or TAC) that the company shares with advertising partners, Google reported sales of $1.53 billion, ahead of the $1.44 billion that Wall Street analysts were expecting. "We're obviously very happy with the company's first-quarter results," said Google chief executive officer Eric Schmidt during a conference call with analysts Thursday. "We basically have good news across the business. It looks like to us that we have continued to gain market share."

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