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But revenue saw a 19 percent boost from the year-ago quarter

Google's second quarter earnings report is out, and while revenue is up from this time last year, earnings didn't look quite as good. 

For Q2 2013, Google reported $14.11 billion in revenue, which is a 19 percent increase from the year-ago quarter. However, Wall Street expected $14.41 billion.

Google's Q2 earnings took a tumble, coming in at $9.71 per share compared to $10.13 per share in the year-ago quarter. Analysts expected $10.78 per share for the most recent quarter. 

These numbers didn't seem to please investors. Google shares closed at $911 yesterday, which was down from a previous close of $919. According to Reuters, Google shares were expected to open 4 percent lower today after brokerages cut price targets as low as $860 from highs like $915. 

Another reason for the lower price targets is Google's changes to its advertising system in order to boost revenue from mobile users. The Android maker started offering the same ads on both PCs and mobile devices earlier this year, but the cheaper ad rates on mobile devices hurt the company's margins.

But Q2 showed that advertising revenue went up 15 percent from $11,902 billion in Q2 of 2012 to $12,061 billion in Q2 2013.

Earlier this month, it was announced that Google and Motorola Mobility were willing to spend as much as $500 million on Moto X advertising -- the first flagship phone by Motorola since being acquired by Google. 

Google's net income for Q2 came in at $3.23 billion, which represented an increase from $2.79 billion in the year-ago quarter. 

“Google had a great quarter with over $14 billion in revenue – up 19% year-on-year,” said Larry Page, CEO of Google. “The shift from one screen to multiple screens and mobility creates tremendous opportunity for Google. With more devices, more information, and more activity online than ever, the potential to improve people’s lives even more is immense.”

Some other interesting points from Google's earnings report is that there are now 750 million Chrome users; 900 million Android devices have been activated to date (with about 1.5 million each day); Google Play has had 15 billion app downloads, and the worldwide employee count fell from 53,891 as of March 31 to 44,777 as of June 30 (mainly due to the loss of Motorola Home). 

Source: Google

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By drumsticks on 7/19/2013 10:50:32 AM , Rating: 2
So even with those wonderful chrome books selling so fast, even google misses its earnings report? Seems like the whole tech industry is down... Strangely not just Microsoft. But spin it hoe ypu will :) obviously google is doing well, as is MSFT apple, Intel and Samsung. I'm actually excited for the Nexus 7 reveal next week, I might be picking one up.

RE: Wait...
By retrospooty on 7/19/2013 11:04:11 AM , Rating: 2
Ya, its more that the markets were expecting more than it is an actual issue.

I was waiting for the Nexus 7 as well, but broke down and got a Toshiba Excite Pro. Its really sweet. perfectly fluid at 2560x1600... Loving it.

- 10.1' 2560x1600 Autobrite HD touchscreen display
- NVIDIA® Tegra 4 quad-core latest gen A15 ARM CPU
32GB storage
Harman/Kardon® stereo speakers
Micro HDMI® - Micro-USB - Micro SD Card ports

RE: Wait...
By w8gaming on 7/19/2013 11:08:57 AM , Rating: 2
I think when the article mentioned 750 million Chrome users, it means the browser, not the Chrome book. No way there will be 750 million Chrome book users out there, considering how long it has been in the market and how many units it has to sell per month to reach 750 million in such a short time. If that was true, Chrome book will be selling better than iPad and it will be an even bigger news.

RE: Wait...
By drumsticks on 7/19/2013 11:14:16 AM , Rating: 2
Oh I know. The chromebook reference was to DT spinning it as some huge growing success while detailing Microsoft's 5B profit a flop because of surface. I know there aren't that many chrome books :)

Excite Pro looks good but a tad pricey, especially for what it offers IMO, since the Nexus 10 is much cheaper still with A15 horsepower. When you consider the Nexus 7 will be a snapdragon 600 CPU for $230, and we will have $300 (plus or minus some) silvermont tablets soon, tegra 4 at $500 is looking very pricy, along with the iPad.

RE: Wait...
By OoklaTheMok on 7/19/2013 3:32:50 PM , Rating: 2
Pretty funny how DT talks up the Chromebook yet talks down the Surface when the Surface, in it's short time in the market, has outsold what the Chromebook has sold over a two year period.

RE: Wait...
By retrospooty on 7/19/2013 4:00:32 PM , Rating: 2
The surface program lost MS $900,000,000... That is an Epic Megafail by any measure. Its one thing to not make a ton of money, or even lose a bit on a project, but that's almost a cool billion. I am sure it will be by the end of next quarter LOL.

RE: Wait...
By BRB29 on 7/19/2013 11:21:43 AM , Rating: 2
I don't think those chrome books actually produce any significant profits. They're either slim or no profit with a high possibility of loss. They're meant to produce more ad revenue.

"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997

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