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

Updated Jul 17th, 2014 4:27PM EDT
Google Q2 2014 Earnings

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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.

Brad Reed
Brad Reed Staff Writer

Brad Reed has written about technology for over eight years at BGR.com and Network World. Prior to that, he wrote freelance stories for political publications such as AlterNet and the American Prospect. He has a Master's Degree in Business and Economics Journalism from Boston University.

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