toggle

AAPL Stock: 121.3 ( -1.07 )

Printed from http://www.macnn.com

Google misses analyst profit estimates, seeing declining growth

updated 04:48 pm EDT, Wed April 16, 2014

Cost per click dropping, growth rate slowing for dominant search engine

Google today announced financial results for the quarter that ended in March. The search engine giant reported consolidated revenues of $15.42 billion for the quarter, an increase of 19 percent compared to the first quarter of 2013. Operating income in the first quarter of 2014 was $4.12 billion, or 27 percent of revenues. Earnings per share in the first quarter was $5.04 on 685 million diluted shares outstanding, compared to $4.97 in the first quarter of 2013 on 673 million diluted shares outstanding.

"Google's revenue was $15.4 billion, up 19 percent year on year", said CEO Larry Page. "We got lots of product improvements done, especially on mobile. I'm also excited with progress on our emerging businesses."

Google sites generated revenue of $10.47 billion, or 68 percent of total revenue, a 21 percent increase over the first quarter of 2013. Partner sites generated revenues of $3.40 billion, or 22 percent of total revenues. This represents a four percent increase over the year-ago quarter in network revenues of $3.26 billion.

Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of network members, increased approximately 26 percent over the year-ago quarter, but decreased approximately one percent over the previous quarter. Average cost-per-click decreased approximately nine percent over the first quarter of 2013, and remained constant from the previous quarter.

Traffic acquisition costs, the portion of revenues shared with Google's partners, increased to $3.23 billion in the first quarter of 2014, compared to $2.96 billion a year ago. Acquisition costs as a percentage of advertising revenues was 23 percent in the first quarter of 2014, compared to 25 percent in the year-ago quarter.




by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

Follow us on Facebook

toggle

Most Popular

Advertisement

Recent Reviews

HP 14-x030nr 14-inch Chromebook

If you're like us, chances are you've come to realize that you need the ability to access the Internet on the go. Also, you've prob ...

15-inch MacBook Pro with Force Touch

Apple's 15-inch Retina MacBook Pro continues to be a popular notebook with professional users and prosumers looking for the ultimate ...

Typo keyboard for iPad

Following numerous legal shenanigans between Typo -- a company founded in part by Ryan Seacrest -- and the clear object of his physica ...

toggle

Most Commented