Earnings: Google Q2 Revenue Solid But Income Is Light; Stock Whacked

This story was written by Joseph Weisenthal.
And they're out Google (NSDQ: GOOG) has announced Q2 revenue ex-TAC of $3.9 billion, just a shade above analyst estimates of $3.87 billion. GAAP Net income was $1.25 billion or $3.92 per share. Non-GAAP EPS came to $4.63 per share, which looks light. Analysts had been targeting $4.74. This should be an interesting call (4:30 PM ET). Revenue on Google's own network grew a still-quite-impressive 66 percent year-over-year to $3.53 billion, though on a sequential basis, this was up just 4 percent from Q1. Network revenue grew by just 22 percent to $1.35 billion.

Some other highlights:

-- International now represents 52 percent
-- Paid clicks slipped 1 percent sequentially and was up 19 percent year-over-year.
-- Total headcount, always a key metric at the ever-expanding company, stood at 19,604, up from 19,156 at the end of Q1. That's a smaller increase than the 851 employees Google added (ex-DoubleClick acq.) last quarter.

In quick after hours activity, Google is trading down about 8.5 percent to $488.08 over 10 percent now to $478.82.
More to come

Release | Webcast (4:30 ET)


By Joseph Weisenthal
The all new
CBS News App for Android® for iPad® for iPhone®
Fully redesigned. Featuring CBSN, 24/7 live news. Get the App