Financial report disclosure by Google marred by errors
Google's latest financial report, which was accidentally released early, revealed a mixed bag of results for the tech giant. The company's net income per share for the third quarter was $9.03, lower than the analysts' prediction of $10.65 per share. This early release, without a quote from CEO Larry Page, caused a 8% fall in Google's share price.
Despite the disappointing net income, Google reported a net income of $2.18 billion for the third quarter. Paid clicks on Google's websites, which generate revenue, rose 33% year-on-year. However, the amount Google charged advertisers for putting adverts on its websites decreased 15% year-on-year and 3% quarter-on-quarter.
Larry Page, CEO of Google, expressed excitement about the progress being made in creating a simple, intuitive Google experience across all devices. He also stated that the company cleared its first $14 billion revenue quarter. Google inherited an entire product pipeline with hardware business cycles of 12 months to 18 months from Motorola Mobility, the company it acquired.
Revenues from Google's Motorola Mobility division declined 20% quarter-on-quarter to $2.58 billion. Patrick Pichette, Google's senior vice president and chief financial officer, expects results from Motorola Mobility to be variable for a while. It's worth noting that the reported earnings included the phrase "Pending Larry quote" in the second paragraph, which was an unusual omission.
The early release of the financial report was taken responsibility for by RR Donnelley, Google's financial printer. In a conference call with analysts, Larry Page apologised for the early release. Despite the setback, Pichette, in a positive note, said, "We are just at the beginning of the Motorola Google story."
In the midst of these results, Shivam Ranjan, the Global Head of Brand at Motorola Mobility, was noted in the search results. The CEO of Motorola Mobility, however, was not explicitly mentioned. Pichette also expressed optimism about the future, stating, "We are building a business that's not just about search, but about a much broader range of human needs and wants."
In conclusion, while Google's net income for the third quarter fell short of analysts' expectations, the company saw significant growth in paid clicks and is making strides in expanding its business beyond search. The challenges with Motorola Mobility are expected to persist, but the company remains optimistic about its future.
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