Today Google reported its first quarter financial performance, with revenues of $14 billion providing the company with non-GAAP earnings per share of $11.58. Analysts and the street had an average expectation of revenues of $14.3 billion – slightly down from the most recent sequential quarter – and earnings per share of $10.70. Clearly, Google beat its EPS estimates, but fell a bit short in terms of revenues.

Google’s revenue figure is better understood by examining its two key constituent parts: first-party site revenue, and network revenue. Top line derived from Google’s own site revenue in the quarter was $8.64 billion, up 18 percent on a year-over-year basis. Revenue from its network rose to $3.26 billion, up 12 percent over the same period.

For reference, network revenue was $3.44 billion in the last quarter of 2012, and site revenue totaled $8.64 billion.

Diving into Google’s ad business, the company’s paid clicks across its site and network increased approximately 20 percent year over year, and were up approximately 3 percent sequentially. Cost per click, on the other hand, decreased approximately 4 percent across Google’s site and network year over year. The same 4 percent decrease can be found when comparing to Q4 2012.

Google’s traffic acquisition costs were up this quarter as well, increasing to $2.96 billion from $2.51 billion in Q1 2012. The company’s international revenues hit $7.1 billion this quarter, up just 1 percent on a year over year basis.

Top Image Credit: Maciek Łempicki