Google’s second quarter results have disappointed Wall Street, despite a 19% year-on-year growth in revenue and strong growth in Android and other platforms.
Google reported $14.11 billion in group revenue during the second quarter, up around 19% from $11.81 billion year-on-year, with net income up to $US3.23 billion, from $US2.79 billion for the same quarter last year.
However, according to Reuters, the company failed to meet expectations, the company earning $US9.56 per share, less than the $US10.78 expected by analysts.
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The average price of Google’s ads also fell by 6%, despite the number of clicks growing by 23%, with the company’s core advertising and search business contributing $13.11 billion of its revenues.
Also concerning investors was a $US218 million quarterly loss at the company’s Motorola division, more than four times higher than the $US49 million it lost for the same quarter last year.
In a speech, Google chief executive Larry Page emphasised the strong growth of the company’s Android and Chrome platforms.
“We’ve now activated more than 900 million Android devices worldwide – and we’re lighting up over 1.5 million devices every day. That’s pretty amazing given the first Android phone launched less than five years ago,” Page said.
“And apps usage is increasing fast. Over 50 billion apps have now been downloaded from the Google Play store. In fact, we’ve already paid out more money to Android developers this year than in the whole of 2012.
“Chrome – even though only four years old – has over 750 million users worldwide and growing! … And there’s a ton of momentum around Chromebooks, which are growing fast and defying the more general decline in PC sales. Finally I know you’re all eagerly anticipating what Motorola is launching soon.”