Google Posts Q2 Bottom-Line Miss; Beats On Top Line
Google (NASDAQ: GOOGL) shares rose sharply in after-hours action when the company posted a second-quarter top-line miss while beating expectations for revenue.
Google's net earnings increased to $3.42 billion, or $4.99 a share, compared with $3.23 billion, or $4.77 a year earlier.
Revenue grew 22 percent to $15.96 billion, from $13.11 billion a year earlier.
Wall Street expected revenue of $15.62 billion.
Excluding items, profits were $6.08, compared to $4.96 in the second quarter of 2013. Analysts expected adjusted earnings of $6.24.
Traffic acquisition costs of $3.29 billion in the second quarter equaled 23 percent of advertising revenue.
Paid clicks grew 25 percent and Google sites generated revenues of $10.94 billion, or 69 percent of total revenue and up 23 percent from a year earlier.
Partner sites revenue grew seven percent to $3.42 billion, or 21% of total revenue, while "other revenue" increased 53 percent to $1.60 billion, or 10 percent of total revenues
Revenue from outside of the U.S. of $9.33 billion, represented 58% of total revenue and little changed from a year earlier.
On a constant currency basis and excluding hedging gains, revenue would have been lower by $120 million.
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