The Q3 numbers aren’t horrible, but disappointing enough to drop Google’s share price about 3.4% in post-market trading in the minutes after the company released its earnings report. The search giant ended the quarter with $2.8B in net income, -5.3% vs the period last year, on revenues of $16.52B, +20.1%. Analysts expected a little more on the top line — the consensus number was $16.57B. But earnings at $6.35 a share fell short of forecasts for $6.53. Still, CFO Patrick Pichette lauded the company’s “strong performance this quarter” adding that he remains “excited about the growth in our advertising and emerging businesses.”
Google says that paid clicks increased 17% from the period last year, and 2% from Q2. But the average cost per click fell 2% year-over-year. Traffic acquisition costs also increased 12.8% to $3.35B, accounting for about 23% of the company’s advertising revenue.