Wall Street was expecting Google to report revenue of $14.80 billion and earnings per share of $10.34. But the Internet search giant beat the estimates when it reported $14.98 billion in revenue and earnings of $10.47 per share.
“Google had another strong quarter with $14.9 billion in revenue and great product progress,” said Larry Page, CEO of Google. “We are closing in on our goal of a beautiful, simple, and intuitive experience regardless of your device.”
The worst news from Google today is that revenues at Motorola continue to fall.
Colin W. Gillis, a technology analyst at BGC, was quoted by The Verge saying that Google has seen a substantial deceleration from the 35 percent annual growth that the company delivered as recently as 2011, averaging around 20 percent in its “last several quarters.”
“We see the slowing core business as a one reason why Google is investing so heavily in new ventures as new products are needed to reignite revenue growth,” Gillis said.
Nonetheless, the news is mostly positive for the company. All told, Google segment revenues were $13.77 billion, or 92% of consolidated revenues, in the third quarter of 2013, representing a 19% increase over third quarter 2012 Google segment revenues of $11.53 billion.
Google Sites Revenues – Google-owned sites generated segment revenues of $9.39 billion, or 68% of total Google segment revenues, in the third quarter of 2013. This represents a 22% increase over third quarter 2012 Google sites segment revenues of $7.73 billion.
Google Network Revenues – Google’s partner sites generated segment revenues of $3.15 billion, or 23% of total Google segment revenues, in the third quarter of 2013, compared to $3.13 billion of Google network segment revenues in the third quarter of 2012.
Other Google Revenues – Other revenues from the Google segment were $1.23 billion, or 9% of total Google segment revenues, in the third quarter of 2013. This represents an 85% increase over third quarter 2012 other Google segment revenues of $666 million.