Google's Third Quarter Profit Misses Target as Advertising Growth Slows

[[Coi] Mr.CLuBBeR]

Sultan of search reported $16.52 billion in Q3 revenues

Google enjoyed another overall strong quarter for the period ended September 30, 2014, with consolidated revenues reaching $16.52 billion, a healthy jump of 20 percent compared to the same quarter a year ago. However, some other numbers were down year-over-year. On a GAAP basis, Google reported $3.72 billion in operating income, or 23 percent of revenues, versus $3.76 billion, or 27 percent of revenues a year ago. Non-GAAP operating income came to $5.36 billion, or 32 percent of revenues, compared to $4.62 billion, or 34 percent of revenues in the third quarter of 2013.
The search giant's profit was down on a GAAP basis ($2.81 billion versus $2.97 billion a year ago) and up on a non-GAAP basis ($4.37 billion versus $3.28 billion a year ago). Either way, Google came up short of what analysts were expecting.
Though revenue was up for the third quarter, the cost per click (average price Google receives each time a user clicks on an ad) dipped 2 percent compared to the previous quarter, and was flat compared to last year. Cost per click for Google sites dropped 1 percent sequentially and 4 percent year-over-year. The primary problem is that users are spending more time with mobile phones and less time on the desktop.
Google's also invested money in its workforce -- the search company now home to 55,030 full-time employees, up from 52,069 full-time workers a year ago.
Image Credit: Flickr (mename comunicacions)
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