Google’s first-quarter profits miss the mark
Google announced its first quarter revenues on Wednesday which were below Wall Street’s expectations eventually disappointing shareholders and a fall in share price by 5.85 percent after the market closed for the day. Contradictory to the expectation of $6.41 earnings per share, it had earned only $6.27 per share, in other words, $3.45 billion.
There was a rise in the year over year revenue by 19 percent to $15.42 billion in which Google’s net revenue was $12.19 billion after paying out traffic acquisition costs incurred.
Google sites reaped $10.47 billion, which is a 21 percent increase compared to the same quarter last year. Its partner sites had $3.4 billion of revenue, which is 4 percent more than its profits of the first quarter in 2013.
Other revenues amounted to $1.55 billion which is 10% of the total revenue and a 48 percent increase with respect to the $1.05 billion it made in the same quarter in 2013. However, this increase was possible due to the Google Play app sales.
Google’s recent acquisitions and the transition from desktop to mobile ads were quoted as reasons for the sluggish financial progress. Undeterred by the dismal remarks of Wall Street, Google’s CEO, Larry Page said, it was “another great quarter.”
While commenting on the developments, Page said, “We got lots of product improvements done, especially on mobile,”.
“I’m also excited with progress on our emerging businesses”, he added.
The search engine giant also had an upsurge in the number of employees due to its recent acquisitions of the artificial intelligence firm, DeepMind and the smart thermostat maker, Nest. Google currently has 46,170 employees.
Google’s CFO, Patrick Pichette remarked that the company will disclose information regarding the earnings from cost-per-click that each of its properties are making from the next earnings report.