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Google posted $14.11 billion in consolidated revenue for its second quarter, up from 12.21 billion for the same period last year, a year-over-year increase of 19 percent.
“The shift from one screen to multiple screens and mobility creates tremendous opportunity for Google,” Google CEO Larry Page said in a statement. “With more devices, more information and more activity online than ever, the potential to improve people’s lives even more is immense.”
The company’s GAAP net income was $3.23 billion, compared with $2.79 billion during the same period in 2012. GAAP earnings per share were $9.54 compared with $8.42 in second-quarter 2012.
Despite these increases, both Google’s earnings and revenue were below analysts’ expectations.
Google’s average ad rate fell by 6 percent from the same time last year, marking the seventh quarter in a row in which the search giant reported falling ad prices.
On a consolidated basis, GAAP operating income in the second quarter was $3.12 billion, or 22 percent of revenue, down from $3.24 billion, or 27 percent of revenue, in second-quarter 2012.
Operating expenses were $4.92 billion in the second quarter, or 35 percent of revenue, compared with $3.89 billion in second-quarter 2012, or 33 percent of revenue.
The company’s free cash flow was $3.09 billion.
During the earnings conference call, Page reminisced about creating Android, Chrome and other Google products. He noted the company has activated more than 9 million Android devices worldwide and had more than 50 billion apps downloaded from Google Play store. The company also has returned more money to Android developers so far this year than it had in all of 2012, he said.
Page and chief business officer Nikesh Arora also briefly touched on the company’s recently launched music-subscription service, with Arora saying that users seem to be enjoying it.
Page also alluded to a product that Motorola would be launching soon, saying he was “excited” about what the Google subsidiary was working on.
During a Q&A with analysts, Arora also talked about its Enhance ad campaign, predicting that as the company continues to get better on all screens and advertisers get better info, the advertisers’ ROI should continue to improve.
Google’s stock fell $36.18, or nearly 4 percent, to $874.50 in after-hours trading after the results were announced.
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