Google Q2 Revenues Grow But Earnings Miss Expectations As Expenses Rise

Google announced its mixed Q2 results tonight along with news that its longtime Chief Business Officer, Nikesh Arora, plans to leave to become CEO of SoftBank Internet and Media. He’ll be replaced by Omid Kordestani, one of Google’s founders.

Net income for the quarter came in at $3.42B, +6% vs the period last year, on revenues of $16.0B, +21.7%. The top line beat analysts’ consensus forecast of $15.6B. But earnings at $6.08 a share, not including one-time expenses, fell short of the Street’s prediction of $6.25.

Paid clicks on Google ads increased 25% vs last year. But the cost per click fell 6%. Also, traffic-acquisition costs increased 9.3%, to $3.3B while other costs rose 29.4% to $2.82B.

Google execs usually offer little color about the quarter in their earnings releases, and this time was no exception. “We are moving forward with great product momentum and are excited to continue providing amazing user experiences, with a view to the long term,” CFO Patrick Pichette says.

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