Google reported its Q1 earnings on Wednesday, posting increases from last year’s first quarter but falling shy of Wall Street estimates.
Google’s revenue revenue rose 19 percent to $15.4 billion for the quarter. Last Q1 reported a rounded $13 million.
GAAP consolidated net income in the first quarter of 2014 was $3.45 billion, compared to $3.35 billion in the first quarter of 2013. Non-GAAP consolidated net income was $4.3 billion in the first quarter of 2014, compared to $4.04 billion in the first quarter of 2013.
Also read: AMC Networks Revenue Soars in 4th Quarter With Help From ‘Walking Dead’
GAAP earnings per share (including impact from net loss from discontinued operations, i.e. the sale Motorola Mobile to Lenovo) in the first quarter of 2014 was $5.04 (on 685 million diluted shares outstanding), compared to $4.97 in the first quarter of 2013 (on 673 million diluted shares outstanding).
Non-GAAP earnings per share in the first quarter of 2014 was $6.27, compared to $6.00 in the first quarter of 2013. Analysts predicted the number closer to $6.31.
Still, CEO Larry Page was pleased. “We completed another great quarter,” he said in a statement. “Google’s revenue was $15.4 billion, up 19 percent year on year. We got lots of product improvements done, especially on mobile. I’m also excited with progress on our emerging businesses.”
The trading price dipped 5.8 percent after the earnings were released.
Also read: Starz Earnings Rise on Subscriber Growth
Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of network members, increased approximately 26 percent over the first quarter of 2013 and decreased approximately one percent over the fourth quarter of 2013.
Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of network members, decreased approximately 9 percent over the first quarter of 2013 and remained constant from the fourth quarter of 2013.
Traffic acquisition costs (TAC), the portion of revenues shared with Google’s partners, increased to $3.23 billion in the first quarter of 2014, compared to $2.96 billion in the first quarter of 2013. TAC as a percentage of advertising revenues was 23 percent in the first quarter of 2014, compared to 25 percent in the first quarter of 2013.