Google profit rises 36.5%, tops Wall Street expectations
After a subpar showing during the second quarter, the company returns to beating Wall Street's predicted targets.
Google's hitting its stride again.
The Internet search giant on Thursday saw its third-quarter profit rise 36.5 percent to $2.97 billion, or $8.75 a share. Excluding one-time items, it posted per-share earnings of $10.74.
Revenue, meanwhile, rose 12 percent to $14.89 billion. Excluding traffic acquisition costs of $2.97 billion, which are paid out to its partners, its actual revenue was $11.9 billion.
Analysts, on average, projected total revenue of $14.79 billion and per-share earnings of $10.65.
The company bounced back from a, when its earnings fell short of Wall Street expectations.
Google's earnings are arguably even more impressive given thataround the company's neck.
While search remains the driver of Google's success, the company is focusing on flattening out the differences between desktop and mobile search revenue, and even taking a short-term hit because of it.
"Net revenue is flat because of changes to search in the short-term," said Patrick Pichette, Google's chief financial officer. To make up the gap, Google is pushing its "enhanced campaigns," which it's using to unify advertising and encourage bidding on mobile keywords.
"Enhanced campaigns are aimed for ROI (return on investment) of the future. The dynamic of CPCs (cost-per-clicks) and paid clicks together is the magic that talks about our growth," he said.
Meanwhile, Google chief Larry Page said that he's not likely to be on earnings calls in the future, deferring to Pichette and Chief Business Officer Nikesh Arora.
"Going forward, I won't be joining every earnings call," Page said. "I know you'd love to have me on, but you're depending on me to ruthlessly prioritize."
Some other key numbers from Google's third quarter:
Google shares rose nearly 8 percent to $959.13 in after-hours trading on Thursday.
Updated at 4:05 p.m. with additional information.