Google has released profits for the initial quarter of 2014 of $3.45 billion, up from $3.35 billion in the same period in 2012, however its average cost-per-click income has fallen.
While paid clicks was boosted 26 percent year-on-year (YoY) (and were down 1 percent as compared to Q4 2013), Google claimed that the cost-per-click earnings dropped by 9 percent year-on-year and was unchanged from Q4. This worried financiers, with shares in the company dropping by as low as $20 in pre-market trading.
The concerns come from concerns over whether Google could create the exact same earnings from mobile advertising clicks as it does from desktop adverts, at a time when smartphones and tablet computers are expanding to all time new highs.
However, Google chief business officer Nikesh Arora claimed in a conference call going over the results that he was certain earnings for mobile marketing would enhance as Comaanies understands the advantages of mobile-based marketing.
"I believe the medium- to long-term mobile pricing has to be better than desktop pricing. And I think the reason – the way to think about it is that in mobile you have location and you have context of individuals, which you don't have in the desktop.
"Part of our challenge has been that. We've had this huge massive advertiser in the desktop, which over the last decade have become better at advertising, understanding optimization, understanding conversion, understanding transaction. That journey is just beginning for advertisers on the mobile side."
Google Chief Executive Officer Larry Web page was also upbeat on the results, as he focused on the sturdy revenue development over the previous Twelve Month. "We finished one more great quarter. Google's income was $15.4 bn, up 19 percent year on year. We obtained lots of product enhancements done, particularly on mobile. I'm likewise excited with development on our emerging businesses," he asked.
Google likewise noted that its suggested sale of Motorola to Lenovo for $3 billion, a significant loss compared to the $12.5 bn it paid for it, impacted its total efficiency. The company racked up $198m losses from discontinued functions, with $74m pre-tax losses associateded with Motorola.
Google also revealed it now has a money equilibrium of practically $60 billion and just under 50,000 staff members around the world. With its impending sale of Motorola to Lenovo, though, this could decrease in the coming months.