Google’s quarterly results have failed to meet Wall Street expectations, despite revenue growing by 20 per cent to $16.5bn (£10.3m) in the three months to 30 September, compared with $13.8bn posted last year.
Analysts polled by Thomson Reuters said they were looking for revenue of $16.6bn in the third quarter. Meanwhile, expenses were up to $6.1bn, or 37 per cent of revenue, compared with $4.6bn, or 33 per cent of revenue, this time last year.
The internet company’s shares were down 2.7 per cent in extended trading yesterday, with the results showing that its total number of ads, or paid clicks, expanded by 17 per cent year-on-year, down from the 25 per cent growth rate that Google delivered in the second quarter.
Google’s online advertising rates, which have been in a multi-year decline, moderated slightly in the third quarter, falling two per cent year-on-year, compared with the six per cent drop posted in the second quarter.
Patrick Pichette, Google’s chief financial officer, said: “Google had another strong performance this quarter. We continue to be excited about the growth in our advertising and emerging businesses.”