Google Earnings Fall Short of Expectations

Google Logo NEW - H 2012

Google Logo NEW - H 2012

Shares of the giant Internet company are down 3 percent in after-hours trading

Google reported Wednesday that its quarterly revenue rose 20 percent to $16.5 billion, while per-share earnings fell to $4.09 compared with $4.38 in the same quarter last year.

The third-quarter results were short of the expectations of analysts, and shares of Google were trading 3 percent lower after the closing bell after having fallen 1 percent to $524.51 during the regular session.

Watch more Stephen Colbert Threatens to Sue Google for Getting His Height Wrong

The world's dominant Internet search engine said that while the number of paid clicks rose 17 percent year-over-year, the cost-per-click fell 2 percent.

The company said total advertising revenue rose 17 percent to $14.68 billion.

Google said its own sites generated $11.25 billion in revenue, up 20 percent, while its partner sites generated $3.43 billion, up 9 percent.

Google ended the quarter with 55,030 full-time employees, up from the 52,069 it had in the quarter that ended in June.