Menu
Google misses forecasts, while cost per click also dips

Google misses forecasts, while cost per click also dips

Challenges in the mobile market continue to be a factor

Google missed analyst forecasts for both earnings and income in the third quarter, while the amount it makes when users click on ads also dipped.

Total revenue for the quarter ended Sept. 30 was US$16.52 billion, Google said Thursday, coming in below analyst estimates of $16.57 billion, as polled by Thomson Reuters.

Net income dropped to $2.81 billion, from $2.97 billion reported during last year's third quarter.

The company's adjusted earnings per share was $6.35, short of analyst expectations of $6.53, but up from $5.63 in the year-ago period.

Despite the report, company CFO Patrick Pichette spun the news as "another strong performance this quarter," in a news release accompanying the figures. "We continued to be excited about the growth in our advertising and emerging businesses," he said.

Google, however, has faced challenges with advertising on mobile devices, traditionally less lucrative compared to the desktop advertising market. Google does not break out desktop advertising from mobile ad revenue, but declines in its cost-per-click figures have been attributed to mobile.

But Google might be moving toward closing the gap. The average cost-per-click, which includes clicks related to ads served on Google sites in addition to network sites, dropped by 2 percent compared to last year. However, that's a lower drop than the 7 percent decline Google reported last quarter.

Paid clicks, which include clicks related to ads served on Google and network sites, rose by roughly 17 percent during the third quarter, but analysts had forecast them to rise from 22 percent to 23.5 percent, depending on the analyst firm making the forecast.

Google's share price took an immediate hit in after-hours trading, plunging sharply from $525.63 just before market close to $498.60, a few minutes after U.S. financial markets closed before leveling off to $524.51 an hour later.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuesInternet-based applications and servicesGooglefinancial resultsinternetsearch engines

Featured

Slideshows

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Examining the changing job scene in the Kiwi channel

Examining the changing job scene in the Kiwi channel

Typically, the New Year brings new opportunities for personnel within the Kiwi channel. 2017 started no differently, with a host of appointments, departures and reshuffles across vendor, distributor and reseller businesses. As a result, the job scene across New Zealand has changed - here’s a run down of who is working where in the year ahead…

Examining the changing job scene in the Kiwi channel
​What are the top 10 tech trends for New Zealand in 2017?

​What are the top 10 tech trends for New Zealand in 2017?

Digital Transformation (DX) has been a critical topic for business over the last few years and IDC is now predicting a step change as DX reaches macroeconomic levels. By 2020 a DX economy will emerge and it will become the core of what New Zealand industries focus on. From the board level through to the C-Suite, Kiwi organisations must be prepared to think and act digital when the DX economy emerges in 2017.

​What are the top 10 tech trends for New Zealand in 2017?
Show Comments