The revenue of Google Inc fell short despite Wall Street’s expectations, and due to the decline in the internet advertising growth in the very recent quarter. It has compensated a meek improvement in its ad pricing, which eventually sent its shares down by 3%.
Meanwhile, online advertising rates that have been stuck in a multi-year drop weakened slightly during the third quarter, down by 2% year-on-year. It has indicated a boost compared to the 6% decline during the second quarter when it comes to the ‘Cost-Per-Click’ (also known as CPC).
Google shares fell by 2.7% on Thursday, or $510.11 in the extended trading.
Colin Gillis, a BGC Partners analyst argued that the CPC decline was a positive indication of the company, emphasizing that flat line CPCs could help the core intensely.
Google’s revenue was posted at $16.52 billion within three months that ended on September 30 this year. During the same period a year back, Google’s revenue was posted at $13.75 billion. According to the poll by Thomson Reuters, analysts estimated the revenue at $16.57 billion within the last quarter.
Google’s spending has also increased during the recent quarter, mainly increasing its headcount by 3,000 employees. The increased headcount contributed to the 46% rise in the company’s research and development spending.
Omid Kordestani was appointed the new Chief Business Officer (CBO) through Google’s announcement on Thursday. Kordestani replaced Nikesh Arora’s position as he left the company a quarter ago and joined Japan’s Softbank Corporation. CBO is considered as a strategic position in the company, supervising every revenue-generating activity on Google, while acting as a liaison to Wall Street and investors.