The biggest search engine giant, Google Inc (NASDAQ:GOOGL), reported its third quarter 2014 financial results with less-than-expected revenues for the quarter. After announcing its revenue, its shares declined to $525.90 during the afterhours trade.
Google announced its third quarter 2014 financial results with consolidated revenues of $16.52 billion and registered 20% increase in its revenue from the same quarter last year. There was a slight decline in its GAAP net income to $2.81 billion from the prior year quarter GAAP net income of $2.97 billion. At the same time, GAAP operating income during the quarter was $3.72 billion as compared to the GAAP operating income of $3.76 in the third quarter of 2013. GAAP EPS from third quarter 2014 was $4.09 along with non-GAAP EPS of $6.35.
Patrick Pichette, CFO of Google Inc (NASDAQ:GOOGL), said,
“Google had another strong performance this quarter, with revenue up 20% year on year, at $16.5 billion. We continue to be excited about the growth in our advertising and emerging businesses.”
During third quarter 2014, sites operated by Google accounted for majority of its revenue at $11.25 billion as compared to $9.38 billion during the same quarter last year.
The positive outcome from third quarter 2014 was the comparatively lower decline in “cost-per-click” rates with a 2% decline on year-over-year basis compared to 6% decline during the second quarter 2014.
Colin Gillis, BGC Partners analyst, said,
“The CPC decline abated. That’s a big positive. If CPCs flatline that’s going to help the core meaningfully.”
Google announced the appointment of Omid Kordestani as the chief business officer of the tech giant and the company additionally hired 3,000 employees at a global level during this quarter. Earlier, this week, Google Inc (NASDAQ:GOOGL) announced three new devices in the Google Nexus Family introducing Nexus 6 Smartphone, Nexus 9 tablet, and Nexus Player, the first Android TV device.
This article has been written by Prakash Pandey.