Mountain View, Calif.—Google on Thursday announced financial results for the first quarter of 2006. Revenue was $2.25 billion for the quarter, an increase of 70% compared with the same period in 2005. Generally Accepted Accounting Principles, or GAAP, net income for the first quarter was $592 million, compared with $369 million in the first quarter last year. Google reports its revenues on a gross basis without deducting traffic acquisition costs, which is the portion of revenues shared with Google’s partners.
“Revenue growth was very healthy,” said George Reyes, senior VP-CFO at Google, on the company’s earnings call. “We saw strong performance in many of our verticals and substantial growth in our site revenues.”
Google-owned sites generated revenue of $1.30 billion, or 58% of total revenues. Google's partner sites generated revenue, through AdSense programs, of $928 million, or 41% of total revenue.