Google has now announced their Q3 2014 earnings and unsurprisingly, revenue for the company is up year over year. This time around, reported consolidated revenues of $16.52 billion for the quarter ending September 30, 2014, amounting to an increase of 20 percent compared to the third quarter of 2013.
Q3 Financial Highlights
- Revenues and other information - Google Inc. revenues for the quarter ended September 30, 2014 were $16.52 billion, representing a 20 percent increase over third quarter of 2013 revenues of $13.75 billion.
- Sites Revenues - Our sites generated revenues of $11.25 billion, or 68 percent of total revenues, in the third quarter of 2014. This represents a 20 percent increase over third quarter of 2013 sites revenues of $9.38 billion.
- Network Revenues - Our partner sites generated revenues of $3.43 billion, or 21 percent of total revenues, in the third quarter of 2014. This represents a 9 percent increase over third quarter of 2013 network revenues of $3.15 billion.
- Other Revenues - Other revenues were $1.84 billion, or 11 percent of total revenues, in the third quarter of 2014. This represents a 50 percent increase over third quarter of 2013 other revenues of $1.23 billion.
- Operating Expenses - Operating expenses, other than cost of revenues, were $6.10 billion in the third quarter of 2014, or 37 percent of revenues, compared to $4.58 billion in the third quarter of 2013, or 33 percent of revenues.
- Operating Income - GAAP operating income in the third quarter of 2014 was $3.72 billion, or 23 percent of revenues. This compares to GAAP operating income of $3.76 billion, or 27 percent of revenues, in the third quarter of 2013. Non-GAAP operating income in the third quarter of 2014 was $5.36 billion, or 32 percent of revenues. This compares to non-GAAP operating income of $4.62 billion, or 34 percent of revenues, in the third quarter of 2013.
Speaking on the results, "Google had another strong performance this quarter, with revenue up 20% year on year, at $16.5 billion," said Patrick Pichette, CFO of Google. "We continue to be excited about the growth in our advertising and emerging businesses."
Source: Google
Reader comments
Google announces Q3 2014 earnings: revenue up 20 percent year over year
And yet, Google stock price is down close to 3%... The market is such a fickle place!
Let's see, their revenues are up 20% and because their stock prices are down because the speculators haven't driven it up
as much as expected that is doom and gloom.... That is funny.....
I would say Google is doing well regardless.
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The Advertising business is very lucrative these days for a company as powerful as Google.....as long as android is alive, well, and continues to dominate mobile marketshare and significantly improve an already superior OS in the coming days, I couldn't be happier
9erfan3,
You got to let go. It is just a company. They would throw you under a bus for profit. I could care less. I have iPhone 6 mobile, Nexus Tablet, and Surface 3 pro for my laptop. They are just tools and get you from point A to B. If the next product running muddywater OS gets me from point A to B faster. I would be getting that product next.
No no, Google's motto is to not do evil. Throwing anyone under the bus seems pretty evil, so they won't do it. It's in the manual.
To Google's credit, they refused to do business in China with the censorship laws in place, and do a lot of self-reporting on how much info the likes of the NSA are demanding (as much as they can within the bounds of the law). It's worth mentioning that they do at least superficially attempt to adhere to that credo, at least more than many companies do.
That said, yes, they're a company, they make money, that's first and foremost what they do, for good or ill. Never forget that.
LOL, you mean everything is a PR event for them.
It's good to know that you can care less. It means you care at least a little bit.
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Agree. I think the point is the need to focus on the tool not the company. I guess to also enjoy it and not was time on defending it.
Let's see what happens in the next quarter now that Microsoft and Apple have stepped up their game. And let's not forget the increasing competition in the ad market coming from Facebook and eventually Amazon. Google has to keep innovating even more now than ever.
Good comments! AAPL reports on the 20th and should have some initial iPhone 6 numbers in there. Will be interesting.
Does not matter what apple reports, they can blow expectation out and still drop. The street knows apple have been printing money since 2009 and it does not look like that will change anytime soon. What the street want from apple is the next big thing. Which may seem unfair but that's how the street have been judging apple. Apple stock went down from $700 to high $300 despite the company selling more than ever and literally printing money. So for apple the numbers are always 1/2 of the story. It's also a though position for Cook to be in since there are not a better run company out there.
You are right but what the stock does is based on future expectations. Last quarter they surprised to the upside and went up like $40+ in after hours (or was that the quarter before last, I forget). I think they have a winner in the iphone 6 and 6+ as far as adoption and demand is concerned. If they adjust expected demand to the upside the stock could pop to 105 to 110...
"...literally printing money..."
You obviously don't know what the word "literally" means.
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Microsoft? Look, I love Windows as a desktop platform, but MS hasn't stepped up their game. Not in mobile. It's still something nobody wants to buy.
As for Apple, offering a larger device is a big deal for them, but it's not really 'stepping up their game'. It's more like trying to play catch up.
Stock down 3% in after hours so that everybody is impressed.
What's wrong with you, no negative comments towards our beloved saint google /s.
Shouldn't you be busy ripping your hair out over the lacklustre Apple keynote earlier? Apple are losing the tablet wars and they are obviously impotent with Tim Crook at the helm to do anything about it.
There are a lot of suckers who will sell on the panic of missing a projection. Meanwhile the company's revenues are up. Go ahead and sell. Panic. Jump. I'll buy on your panic and profit long term.
Do you even know what panic selling is? Netflix was down 25%. I am talking about 3%. As Aaron Rogers would say. Reeelaax.
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This author is the only one that did not mention the negatives that occurred which is causing a the stock to go down.
Did you forget where you are? Google is an angel in this corner of the universe.
Agreed, I was just surprised. One news group talked about how the mobile landscape is changing. It mentioned that a new strategy needs to figured out when it comes to mobile ads. Companies like Facebook and Pinterest may have the inside lane to ad revenue.
Facebook had the advantage of recently going public and had time to tailor their mobile business model. It's always harder for a company to change/adjust their business once it's been well establish and working for so long. It's a tricky/delicate dance that can have a lot of negatives to a company if not done correctly.
The advantage FB has is that people on average spend more time per period on their services compared to Google's. With Google, people only spend a couple minutes or so trying to find a website or video and click the link. On FB, people can spend hours and hours on the site looking at the NewsFeed or having long conversations with 10 people at once. That means more valuable data for advertisers can be produced.
Yeah, that's a big problem for them long term. And a big reason if things remain like this facebook ads will command more money per clicks.
Quit hating toukale !! Google is unstoppable and you know it. It'll take government action internationally to stop that train from rolling. As long as capitalism exists, advertising rains supreme. And google holds the keys in the marketing advertisement world.
Also, android is the BORG, resistance is futile
This isn't a place for 12 year old trolls like you. Go somewhere else.
The king troll calling someone else a troll. Comical.
So could Google please work out a deal with TCM and offer their movies etc in the Play Store.
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That's what happens when we Android users be together, not the same. Lol
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Haha like it
Posted with my Nexus 7 2012 or Moto X via the Android Central App
So Samsungs profits went down 25%, and Googles continues to increase by 20% a year? Yup looks like Samsung is Android alright... PERIOD! /s
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+1
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While I like these numbers, the author fails to mention that EPS and revenue missed Wall St. expectations. Author should have mentioned that.
I am sure that even though Wall Street made more money... they are mad they didn't make even more money than expected. The expectation should be, "don't lose money on our investment." - The End
Your comment makes no sense. Literally. Google will open tomorrow very close to it's 52 week low.
@ Brian, You are obviously not a share holder...you should try it. The shareholders want Google to exceed estimates...I know I do. It is all about EPS quarter after quarter.
Tomorrow morning might be a good time to buy some more...
Anyone who is down on a stock for 20% year over year not meeting expectations is a fool. There are a great many fools on Wall Street.
They literally missed expectations. That is why stocks fall. It doesn't matter what you think about their earnings. Just thought the original headline and article failed to mention that, leaving the impression that it's all sunshine and roses.
I agree. As one who has worked in the business of developing "expectations" for companies and the Street, I can attest that most analysts who do the work are simply making up bullshit to fill a model. You'd be surprised how simplistic some of these analyst models are. Bottom line, judge a company on its fundamental business performance, not what a bunch of buffoons on wall street who really have no clue what's going on inside these companies "expect" them to do. I'd say Google is solid.
I've sat across from many CEOs and CFOs of large public companies trying to gain insight to develop "expectations," but at the end of the day, it's still just a guessing game.
And by the way, real investing is not buying or selling a stock based on current quarter results. Pros rarely do. They are buying and selling based on the future outlook, that is one, two, three quarters ahead, or even years ahead.
Posted via mostly ghost taps on OG N7, in the Android Central App, therefore posts may not be my own.
By the way, this is not to be taken as any kind of investment advice one way or another...just my take on the issues. I own no shares of Google stock nor do I keep up with them professionally in any way.
Posted via mostly ghost taps on OG N7, in the Android Central App, therefore posts may not be my own.
brendilon...If the expectation is 30% and they come in at 20% and Facebook is growing faster and cutting into their ad revenue then it is underperforming. Yeah you're so smart...probably do not even own Google stock but love to tout how great they are...keep buying those android phones and see how they help you in retirement.
This. Wall street is all about expectations and Google missed. All you people praising Google may have not seen the balance sheet and the fact the stock is down in after hours trading. Time to put away the toys and earn some money. Probably trying to distract with yesterdays announcements.
http://www.cnbc.com/id/102094576#.
Fool.
No, people who are short sighted are about short term expectations. Those that are in for a long term investment are about long term fundamental performance, not one quarter's worth of analyst bullshit.
Posted via mostly ghost taps on OG N7, in the Android Central App, therefore posts may not be my own.
This. It means that a good company that earns 20% YOY is on sale right now because investors act like a gaggle of chickens with their heads cut off over short term goals. If you think now is a good time to sell Google, you'd be mistaken. No, this does not constitute investment advice, just my non-professional opinion.
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@metalmike, I have owned Google since 2004, I get it. You already said you have no position in Google. There is a difference in being long and knowing when a company need to stop playing with fun projects and address Facebook which has the potential to cut not their business. Oh unless you think G+ is the answer. Trust me, I am thinking out 2+ years with my comments.
Revenue was up but profit was down.
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Revenue was light. My comment was that the OP should have mentioned that. Google has missed 5 of the last 8 quarters. I like the company and the stock, but their core business is being penetrated by competitors. They have to do better.
Revenue does not equal profit. Revenue is money that comes in, profit is what is left over after all expenses are paid (aside from dividend payments, which are derived from the profit figure). Until Google announces their profits for the year, don't compare that number to Samsung. A basic understanding accounting is all that is needed for this discussion.
Eat it yarell
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Was it really necessary?
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Yes.
Posted via the Nexus 5, Nexus 6 coming very soon
Ha ha
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Yep yep yep yep
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Great as usual.
The profit margins are shrinking and advertisers have been seeing diminished returns. This will not bode well for google in the long run.
Concern troll is concerned.
+1
Posted via Nexus 7 2013 or verizon Galaxy S5 or maybe one day through my moto 360