- POSTED: 18 Jul 2014 05:23
Google reported a small increase in profits on Thursday below market expectations, but a strong rise in revenues lifted its stock price.
SAN FRANCISCO: Google reported a small increase in profits on Thursday below market expectations, but a strong rise in revenues lifted its stock price.
The California-based Internet titan said that its profit during the three months ending June 30 rose six percent from a year ago to US$3.42 billion.
"Google had a great quarter with revenue up 22 per cent year on year, at US$16.0 billion," chief executive officer Patrick Pichette said in an earnings release.
"We are moving forward with great product momentum and are excited to continue providing amazing user experiences, with a view to the long term."
Google shares rose 1.5 per cent to US$582.35 in after-market trading that followed release of the earnings figures.
The company also said that one of its key executives, chief business officer Nikesh Arora, would be leaving Google after nearly 10 years to take a job at Japan's SoftBank.
Arora will be replaced in the interim by Omid Kordestani, a business founder who led Google's sales teams.
Google said a key factor in revenues was the jump in "paid clicks," for ads related to search on Google and its partner sites.
Total paid clicks were up 25 per cent from a year ago and two percent from the past quarter, while the average cost per click was down six percent from a year earlier.
Google is the leader in digital advertising with a 31.9 per cent share of the global market in 2013, according to the research firm eMarketer. The closes rival was Facebook with 5.8 per cent.
According to eMarketer, Google has more than 50 per cent of the worldwide mobile ad market.
While Google makes most of its money from digital advertising, it has been moving into new areas such as home automation, self-driving cars and wearable technology like Google Glass.
Google's profit per share was US$6.08, about 16 cents below analyst forecasts but revenues were better than the average estimate of US$15.6 billion.