14 DAY TRIAL // Google’s third quarter earnings report is here and even though it’s looking pretty good, Wall Street isn’t too happy with the company as it missed expectations.
The Internet giant saw its advertising business grow slow, which seems to have caused a chain reaction in the company. The total number of paid clicks grew by 17 percent in the last three months, but the growth rate is 25 percent under the second quarter results.
On the other hand, Google posted $16.52 billion (€12.92 billion) in review for the three months that ended on September 30. That’s nearly $3 billion (€2.34 billion) more than it racked up in the same period of 2014. Even though the results are pretty impressive, analysts still believed the company would score a few more millions extra.
“Google had another strong performance this quarter, with revenue up 20% year on year, at $16.5 billion (€12.9 billion). We continue to be excited about the growth in our advertising and emerging businesses,” said Patrick Pichette, chief financial officer at Google.
Over the summer, Google has added about 3,000 new employees, which translated into a 46 percent rise in research and development costs.
Google’s sites generated revenues of $11.25 billion (€8.79 billion), which is 68 percent of the company’s total revenues. In the third quarter of 2013, Google had reported $9.38 billion (€7.33 billion) in revenues from the same source, which is 20 percent less than this year.
The company’s partner sites generated revenues of $3.43 billion (€2.68 billion), about 21 percent of total revenues, which is 9 percent over the results from the same period of last year.
As far as the geographical split of revenues goes, Google states that $9.55 billion (€7.46 billion) came from outside the United States, which is 58 percent of the entire number. The United Kingdom alone brought in $1.63 billion (€1.27 billion).
Big profits for Google
Google’s net income in the year’s third quarter was of $2.81 billion (€2.19 billion), a little less than it earned in the same period of 2013, when the company scored $2.97 billion (€2.32 billion) in profits.
The company also had some net losses from discontinued operations. More specifically, some $185 million (€144.7 million) have gone down the train, less than the $193 million (€151 million) of the previous year.
“Net loss from discontinued operations in the third quarter of 2014 included a pre-tax adjustment of $26 million (€20.3 million) related to the release of the deferral of certain revenue for the Motorola Mobile segment. Had we presented Motorola Mobile as an operating segment, the Motorola Mobile segment revenue for the third quarter of 2014 would have been $1.69 billion (€1.32 billion), $26 million (€20.3 million) lower than what was included in net loss from discontinued operations,” Google explains.