Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

After Google disappoints, Page points at future growth chances

Juan Carlos Perez | Oct. 19, 2012
Google CEO Larry Page tried to put a positive spin on his company's poor third-quarter financial results, which were released prematurely Thursday and triggered a panicked stock sell-off before trading was abruptly halted.

In addition, the commissions and fees Google pays to partners, known as Traffic Acquisition Costs (TAC), increased to $2.77 billion from $2.21 billion.

Stock-based compensation expenses also increased year on year, to $715 million from $571 million.

Meanwhile, Motorola Mobility, whose $12.5 billion acquisition Google closed in May, had an operating loss of $527 million on revenue of $2.58 billion. In addition, restructuring and related charges recorded in the Motorola business were $349 million, and the related tax benefits were $76 million.

Other Google executives joined Page in singing a happy tune, including CFO Patrick Pichette, who said he was pleased with the business' "growth trajectory." Pichette said Google's numbers were also adversely affected by "currency headwinds."

Nikesh Arora, Google's chief business officer, reiterated the mobile opportunity, and said the company's enterprise software business, including Google Apps, "continued to thrive" during the quarter.

Google is hard at work at improving its mobile advertising technology, Page said, in part to make it much easier than it is today for marketers to manage their mobile ad campaigns.

Google ended the quarter with $45.7 billion in cash, cash equivalents and short-term marketable securities.

 

 

Previous Page  1  2 

Sign up for CIO Asia eNewsletters.