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

July 17th, 2014 at 4:13 PM
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.

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