Google reported quarterly earnings that topped market expectations, supported by strong growth in its core advertising business.
After the earnings announcement on Thursday, the company's shares gained. (Click here for the latest after-hours quotes.)
Revenue in the Internet giant's core business grew 22 percent to $9.99 billion, excluding traffic acquisition costs, from $8.14 billion a year earlier.
Revenue from advertisers measured in cost per click has a major effect on Google's margins. Average cost-per-click, which measures how much an advertiser pays when users click on ads, decreased approximately 4 percent over the first quarter of 2012. That's an improvement from the 6 percent year-over-year decline recorded in the fourth quarter.