Printed from http://www.electronista.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 Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

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

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Logitech Hyperion Fury mouse

Selecting the correct gaming mouse comes down to finding a device that balances the needs of a user with a price they can afford. Ofte ...

Life n Soul BM211 Bluetooth speaker

Bluetooth speakers aren't only for listening to some music at the park or on a long bus ride, but can also be built with tablets in mi ...

Epson PowerLite Home Cinema 2030 projector

With high-definition televisions now the standard, 4K televisions becoming the next big thing, and plasma TVs going the way of the din ...

Sponsor

toggle

Most Commented

 
toggle

Popular News