Google also remains highly profitable, although an apples-to-apples comparison between its overall financial results and those of Microsoft's OSD are difficult to make based on the information available. For example, Microsoft doesn't count revenue and expenses for Windows Live -- which includes Hotmail and Messenger -- as part of OSD's financial results, instead accounting for them under a different business segment, the Windows and Windows Live Division.
Nevertheless, Google's profitability marks a sharp contrast with OSD's ongoing losses. The company's revenue rose 23 percent during the first quarter of 2010 to $6.77 billion, while its operating profit -- the company's revenue minus operating expenses, which excludes interest and taxes -- rose 32 percent to $2.49 billion.
Whether OSD will turn a profit remains to be seen. Microsoft believes Bing is on the right track. Speaking at a Morgan Stanley conference last month, Microsoft CFO Peter Klein said the Yahoo deal gives Microsoft's search business the economies of scale it needs to be profitable over the long term.
"We love the direction we're heading there," Klein said at that time.