Google's earnings are out and its a strong showing for the search giant in terms of profits, with weaker figures on the revenue side.

Last quarter, Google earned $14.4 billion in revenue, less than half of which came from the US and most of which came from Google-owned properties. Wall Street was expecting that number to actually decline, as the first quarter is typically much weaker for ad sales than the holiday packed fourth quarter. Instead they were looking to see Google's year over year growth.

Google reported slightly lower than expected revenues at $13.97 billion, but boosted its profit far more than expected, delivering net income of $3.90 billion and earnings of $11.58 per share. It grew 31 percent year over year. Over the same period cost per click was down four percent, but paid clicks increased 20 percent.

Where does Google's upside come from? In part it is stealing share from Yahoo, which has seen its core ad business decline. The flip side is how well Google can prevent new players like Facebook and Twitter from encroaching on digital ad dollars. So far it seems the company can continue to grow.

The revenues for the Motorola division dropped sharply as compared to the holiday quarter, from $1.51 billion to $1.02 billion. Motorola is also still posting losses, of course, $271 million this quarter on a GAAP operating basis. That loss is largely in line with last quarter as a percentage, and it's a sign that the smartphone division is still essentialy in a steady decline as we wait for new devices. If Motorola doesn't put something out soon, that decline could turn into a downward spiral.

Google's earnings call, including thoughts from CEO Larry Page, is embedded below.