Feeds

Google's latest mega-earnings fail to impress shareholders

What, just $15.4bn? You bore us, Google...

Top three mobile application threats

It's hard to be disappointed about quarterly revenues of $15.42bn – unless you're Google, that is, and the analysts expected you to bring in even more.

The online ad-slinger underperformed in both revenue and earnings per share during the first quarter of its fiscal 2014, based on the average estimate gathered by Yahoo! Finance.

The analysts were expecting Google to report revenues of $15.52bn for the three months ending March 31 and earnings per share of $6.40, but its actual revenues were lower and its earnings came in at a slightly more modest $6.27 per share.

So that's the bad news. For any other company, however, Google's performance might be considered outstanding, having increased its revenues by 19 per cent, year on year, for the second quarter in a row.

Its profits grew somewhat less, up 2.9 per cent from the year-ago period to hit $3.45bn for Q1 of 2014.

Part of that slower net income growth is due to a continuing trend in the search advertising business, where although the number of clicks for which Google earns money keeps rising, the average amount it's paid for those clicks is falling.

Paid clicks were up 26 per cent over the year-ago quarter and up 1 per cent since the previous sequential quarter, but cost-per-click was flat from the fourth quarter of 2013 and down 9 per cent since the year-ago period.

Google's traffic acquisition costs also continue to rise, up 9.1 per cent in Q1 of 2014 as compared to the previous year's quarter. On the plus side, those costs as a percentage of revenue were down, with traffic-acquisition fees amounting to 23 per cent of revenue in the quarter, compared to 25 per cent for the same period a year ago.

All in all, advertising accounted for 90 per cent of the Chocolate Factory's revenues, which was up slightly from the previous sequential quarter but down year-over-year.

Google's remaining proceeds came from what calls its "other" category, which comprises all forms of non-advertising revenue, including sales of things like Android devices, Chromecast, and apps and media from the Google Play store. Those revenues were $1.55bn in the quarter, or 10 per cent of the total, compared to $1.05bn in the first quarter of 2013, which was 8 per cent of that year's total.

The company is also pulling in a larger share of its revenue from outside the United States, with non-US sales amounting to 57 per cent of its total revenues in Q1 of 2014 compared to 55 per cent in Q1 of 2013.

None of this seemed to please investors, however, who sent Google's stock price up briefly during regular trading but tumbling back down after hours, to land down 3.35 per cent. ®

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.