Google Q1 revenue misses Wall Street targets

SAN FRANCISCO Thu Apr 17, 2014 4:33am IST

An employee answers phone calls at the switchboard of the Google office in Zurich August 18, 2009. REUTERS/Christian Hartmann/Files

An employee answers phone calls at the switchboard of the Google office in Zurich August 18, 2009.

Credit: Reuters/Christian Hartmann/Files

Related Topics

Stocks

   

SAN FRANCISCO (Reuters) - Google Inc's first-quarter revenue fell short of Wall Street targets and margins narrowed as the price of its ads continued to decline, pushing its shares sharply lower.

Shares of Google were down 5.7 percent at $525 in after-hours trading on Wednesday.

The number of "paid clicks" by consumers on Google's ads increased by 26 percent in the first quarter, disappointing some analysts that had hoped for stronger volume growth. And the average "cost per click" declined 9 percent, extending a downward trend as mobile advertising, typically cheaper than traditional online ads, make up a bigger slice of its business.

"It's an average quarter from a great company," said BGC Partners analyst Colin Gillis. "It's the same old story. Paid clicks were a little lighter than people might have hoped, CPC declines were a little higher than people would have liked, expenses continued to rise."

Operating income slipped to 32 percent of revenue on an adjusted basis, from 34 percent in the year-ago period.

Google's core Internet business revenue climbed 19 percent to $15.42 billion in the first quarter from $12.95 billion in the year-ago period.

It posted $3.45 billion in net income, or $5.04 per share, in the three months ended March 31, compared to $3.35 billion, or $4.97 per share, in the year-ago period. Excluding certain items, Google earned $6.27 per share. Google reported a $198 million net loss from "discontinued operations," which includes the Motorola smartphone business. Google announced plans in January to sell the money-losing business to China's Lenovo Group for $2.91 billion.

(Reporting by Alexei Oreskovic; Editing by Richard Chang)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

WTO

REUTERS SHOWCASE

Factory Activity

Factory Activity

Factories post fastest growth for 17 months in July  Full Article 

Car Launch Ahead

Car Launch Ahead

Tata Motors bets on new sedan to revive weak India sales.  Full Article 

Gold Smuggling

Gold Smuggling

In cat-and-mouse game, India uncovers new gold smuggling route.  Full Article 

Market Eye

Market Eye

FII selling of Indian stocks on Thursday biggest in a month  Full Article 

Profit Falls

Profit Falls

DLF quarterly profit falls 29 pct on lower home sales  Full Article 

Re-gaining Momentum

Re-gaining Momentum

China PMIs jump to multi-month highs in July, add to view economy is steadying  Full Article 

Coal India

Coal India

Some Coal India mines may be run by foreign firms - minister  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage