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Google whiffs again in Q2 2014 earnings but beats on revenue expectations

Google Q2 2014 Earnings

Google on Thursday reported adjusted earnings of $6.08 per share on revenues of $15.96 billion, which missed the consensus estimate of earnings of $6.24 per share while beating the consensus estimate of revenues of $12.32 billion. The past quarter was a very busy one for the search giant, which unveiled its new Android L platform that features a completely new user interface design, as well as Android Wear, its first attempt at making a platform for wearable computers.

Aside from the big EPS and revenue figures, Google also saw its cost-per-click — a key metric used to determine how much money Google can charge for advertisements — decline by 6% year-over-year from Q2 2013. This is actually an improvement from the last quarter when Google saw its cost-per-click fall by 9% year-over-year from the first quarter of 2013. Google also says that its total number of paid clicks increased by 25% year-over-year, which helped make up for the loss of per-click revenue.

“Google had a great quarter with revenue up 22% year on year, at $16.0 billion”, said Patrick Pichette, CFO of Google. “We are moving forward with great product momentum and are excited to continue providing amazing user experiences, with a view to the long term.”

Google shares immediately rose by 1.2% in after hours trading after the earnings report came out.

Prior to joining BGR as News Editor, Brad Reed spent five years covering the wireless industry for Network World. His first smartphone was a BlackBerry but he has since become a loyal Android user.