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Google Q3 Earnings: $2.18B Profit On $14.1B Revenue Despite Morning’s Stock Fiasco

This morning, everyone’s eyes are on Q3 earnings call numbers and unfortunately, Google has had a rough day so far. After an unauthorized printing and release of the search giant’s Q3 fiscal records, their stock instantly took a major hit of 9%, before trading was halted on the NASDAQ. 

Earlier this morning RR Donnelley, the financial printer, informed us that they had filed our draft 8K earnings statement without authorization. We have ceased trading on NASDAQ while we work to finalize the document. Once it’s finalized we will release our earnings, resume trading on NASDAQ and hold our earnings call as normal at 1:30 PM PT.

One of the highlights that was noted was the fact that Google cut its full-time workforce from 54,604 to 53,546 since June of this year. In all, Q3 earnings were down about 20 percent from last year’s, still profiting $2.18 billion on $14.1 billion when compared to last year’s $2.73 billion on $9.72 billion third quarter. In terms of cash, Google is still loaded with roughly $45.7 billion in the bank.

Google’s CEO, Larry Page gave the following statement on the company’s quarter:

We had a strong quarter. Revenue was up 45 percent year-on-year, and, at just fourteen years old, we cleared our first $14 billion revenue quarter. I am also really excited about the progress we’re making creating a beautifully simple, intuitive Google experience across all devices.

Well, it looks like Larry’s thoughts are in the right spot for us at least – mobile devices! Google is hosting an investor’s call in about 20 minutes where we’ll be listening in for further details or anything Android related.

Via: Google

  • trixnkix637

    If there was ever a time to buy Google stock, it was at that 9% downfall.

  • HotRodJohnson

    I don’t know why this happened. I mean the Android system is great. If Only they a hardware partner or control of some company out there that could complete their vision of a mobile device. Then the earnings would go though the roof!

    • DainLaguna

      they’d have to move significant numbers of that particular device though…which means it’d have to be on all carriers and have zero interference from them…basically a nexus device thats handled like an iphone, but doesnt have to be purchased through the play store, and can be bought on contract if they wish. Android’s choice is excellent, but its a double edged sword at times…even if the aforementioned situation were possible, people would have several other android devices to choose from ,each with their own bells and whistles, unlike an iphone, which limitis it to how much you wanna pay. it’ll be interesing seeing how google goes about making android even more profitable

    • DavidHollinger

      It’s because the “cost per click” for ads has gone down while the total number of clicks on ads has gone up.

    • Manny

      It happened b/c android is not a money maker. Moto, HTC, and Lg are all struggling only samsung is doing ok. Considering all the crappy 99 dollar tablets and cheap hardware android uses I’m actually surprised this isn’t worst than it is. Android is nice but it’s not profitable.

      • trixnkix637

        That’s hardly a result of Android. Look at who you’re comparing. How many crappy & useless revisions of devices as Moto, HTC, & LG produced? Samsung? They’ve been riding nice & happy since the Galaxy line told hold of markets. The DROID brand is basically a punchline nowadays.

    • S Jobs

      Looks like Apple is going in for the kill.

      Great job with Motorola guys!

  • sc0rch3d

    One of the highlights that was noted was the fact that Google cut its full-time workforce from 54,604 to 53,546

    only b/c it makes the stock go up….pffft….

    • 1bens

      I ask if this decrease due only to the Moto division layoffs?

  • Artune

    Google is still “that” company. I would love to work for them

    • Royal2000H

      There’s a difference between working for them due to certain benefits and investing in them for the hope of financial gain.

      • Cowboydroid

        People that sell off stock after a single quarter of earnings that weren’t quite what they were expecting shouldn’t have stock in the first place. You invest for the long-term. Google has tremendous long-term potential in computing, which is the future of technology and the economy.

        • Pending Larry

          You should be very bearish on Google’s long term future. The only segment of the company that makes any “real” money is advertising. Due to the app-ification people are using search less and less. In 2017 when Google’s patent on their search algorithm expires they will be in even worse shape. This is why Google is trying to manufacture actual products recently. However, as of yet none of the products they produce has actually taken off. Android is their biggest product but they don’t receive anything from Android other than Google Play revenue which is very small in the scheme of things. Google had a nice run but unless they come up with some new idea that generates profit their long term forecast is not very impressive.

          • Cowboydroid

            Think about the supercomputer intelligence that Google is building with their search and prediction algorithms and their computing infrastructure…

            You don’t see any monetization value in that?

          • Artune

            Yep it is trade secret and Bing/Yahoo would kill to get the recipe for it. They say google is making 15 bucks per page click by a consumer while let’s say Facebook is making only 3-5 bucks. Google is in decent shape and I see it being the case for a while

          • Cowboydroid

            Also, they don’t have patents on search algorithms. That kind of gave you away as clueless. They’re covered by trade secret.

        • Royal2000H

          Long-term potential in computing, whether true or not, does not change the fact that different things need to be (and are) weighed when choosing whether to work for a company vs whether to invest in one.

  • Was a Stock Holder

    Google’s earnings wasn’t as high as expected and were lower than their past earnings. The stock would have took a hit even if the report wasn’t released early.

    • Was a Stock Holder