Despite $16.5 billion in revenue, Google misses Q3 estimates
It was time for another one of Google’s investor calls this afternoon, with Google’s CFO Patrick Pichette leading the call to talk about the company’s Q3 2014 earnings.
Despite Google tipping the scales at $16.5 billion in revenue for the quarter — a 20% growth year-over-year — it seems the internet search giant may have fallen just a little bit short of initial estimates with profits at $6.35 a share, versus a $6.53 projection.
This was due in part to slower growth of Google’s advertising business which was up 17%, but still a slowdown from Q2. Google’s websites were also up 20%, coming in less than the prior quarter’s 23% growth. Google’s operating expenses accounted for 37% of their revenue (up from 33% the previous year).
Looking ahead, Google is working on ads that resize themselves to accommodate the growing number of smaller displays (smartphones) accounting for web traffic. For those interested, you can find more detailed numbers over on Google’ official Investor Relations page linked below.