Larry Page, CEO of Google
Internet juggernaut Google reported revenues of US$15.4bn, up 19pc on last year. However, despite the soaring revenues, investors on Wall Street weren’t impressed as acquisitions such as the US$3.2bn purchase of Nest took a toll on earnings, and Google shares were down 5.5pc in after-hours trading.
Investors were also expecting an increase in paid clicks, which rose 26pc and fell short of analyst expectations of 33pc.
The company recorded profits of US$3.45bn, up slightly from US$3.35bn last year.
Cost per click had been expected by Wall Street to fall by 11.1pc, but only fell by 9pc compared with last year.
During the year, Google acquired the thermostat company Nest, created by iPod designer Tony Fadell, for US$3.2bn.
Google also sold Motorola Mobility, which it bought for US$12.5bn in 2012, to Lenovo for just US$2.9bn.
Sites revenues came in at US$10.4bn, up 21pc on 2013, and partner sites generated revenues of more than US$3.4bn, which was up 4pc on 2013, giving Google CEO Larry Page plenty of reason to sound optimistic.
“We completed another great quarter. Google’s revenue was US$15.4bn, up 19pc year on year,” said Page.
“We got lots of product improvements done, especially on mobile. I’m also excited with progress on our emerging businesses.”
