Google Shares Up Over 8% Following 3Q Earnings
Shares of Google rose over 8 percent Thursday in after hours trading, as the company reported $14.9 billion in third quarter revenue, up 24 percent annually.
Meanwhile, GAAP operating income in the third quarter of 2013 was $3.44 billion, or 23 percent of revenues. This compares to GAAP operating income of $2.74 billion, or 21 percent in the same quarter last year. of revenues, in the third quarter of 2012.
Earnings per share, including impact from net income from discontinued operations in the third quarter of 2013 was $8.75 on 339 million diluted shares outstanding, compared to $6.53 in the third quarter of 2012 on 333 million diluted shares outstanding.
The company's Motorola Mobile segment continued to fade. The handset division saw revenues of $1.18 billion, or 8 percent of consolidated revenues in quarter, compared to $1.78 billion, or 13 percent of consolidated revenues in the same quarter last year.
More users continue to access Google services on mobile devices. In an afternoon earnings call Thursday, CEO Larry Page said that 40 percent of YouTube traffic now comes from mobile, up from 6 percent just two years ago.
Page said he will not be join earnings calls in the future.
Nikesh Arora, senior vice president of business growth, said Mobile continues to grow as a driver of ad conversions. He said that mobile is driving phone calls driven by Google ads, as well as in-store spend.
Google's aim is a simplified user experience that is the same across screens. The same is true for advertising. Page noted a couple of features that have made it easier for consumers to make purchases on their mobile devices.
"I think we made tremendous progress on voice recognition...the accuracy has gone up quite a bit...it's super fast...we have a lot of usage coming from voice," Page said.
Going forward, Page said it's hard for Google to spend any kind of real capital, relative to Google's size, on long-term projects.
Pichette chimed in saying that things like machine power, including storage, was where Google would make investments.
"It would be very detrimental for us to not have the computing power we need, when we need it," Pichette said.
As of 5:10 p.m. EST, Google was up 8.23 percent in after hours trading to $961.35 per share.