Google Inc (GOOG) Beats Wall Street Expectations
Google Inc (NASDAQ:GOOG) has reported better than expected Q3 financial results today. Ads selling on Google.com and their other websites has increased 22% year-over-year. This is impressive considering that this rate was below 20% over the last four quarters. Unfortunately, the price that advertisers pay each time someone clicks on an ad has decreased for the 8th quarter in a row. It fell 8% from the same period last year because mobile ads cost less than desktop ads. Google has reported Q3 revenues at $14.89 billion, which is up 12% from a year ago. The company’s net revenue (excluding payments to ad partners) was $11.92 billion, which is up from $11.33 billion during the same period last year.
Google’s net income rose to $2.97 billion ($8.75 per share) from $2.18 billion ($6.53 per share). Google’s third quarter profit was $10.74 per share (excluding the cost of stock options). Analysts were expecting revenues of $14.82 billion and earnings at $10.35 per share (excluding stock option costs). Google’s shares increased over 6% in after-hours trading.
Google had a $248 million operating loss at Motorola Mobility despite cutting a lot of costs there. Motorola introduced the Moto X and there were a lot of costs associated with the launch of that device.
Google reigns supreme as the leader in online advertising since they earned 41% of all digital ad revenues and 53% of mobile ad revenues, according to data compiled by eMarketer.
Google CEO Larry Page said that this would be his last conference call for a while. This is due to his paralyzed vocal chords, known as a condition called Hashimoto’s Thyroiditis. This causes him to have a hard time talking due to benign inflammation. It is common for CEOs to avoid earnings calls. Steve Jobs did not handle Apple’s earnings calls and Jeff Bezos does not handle Amazon’s calls.@amitchowdhry or on Google+ at +AmitChowdhry