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Google announced earnings last week and for the first time in a long time, those earnings did not beat expectations.
The main concern from investors is the 6% drop in cost per click (CPC) prices. While we've seen a 2-4% decrease in those prices, it seems the 6% scared many.
For the quarter, EPS came in at $9.56 per share on revenues of $14.1 billion. Analysts had been looking for $10.80 and $14.4 billion respectively.
Here are some of the highlights from the huge earnings report:
- $14.11 billion for the quarter ended June 30, 2013, an increase of 19% compared to the second quarter of 2012.
- GAAP operating income in the second quarter of 2013 was $3.12 billion, or 22% of revenues. This compares to GAAP operating income of $3.24 billion, or 27% of revenues, in the second quarter of 2012.
- Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our Network members, increased approximately 23% over the second quarter of 2012 and increased approximately 4% over the first quarter of 2013.
- Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our Network members, decreased approximately 6% over the second quarter of 2012 and decreased approximately 2% over the first quarter of 2013.
- As of June 30, 2013, cash, cash equivalents, and marketable securities were $54.4 billion.
Bad bad bad numbers Google. :)
Forum discussion at WebmasterWorld.
