Google Earnings as Confusing as Its Stock Split

24/7 Wall St.

The_Googleplex Google Inc. (NASDAQ: GOOG) reported first-quarter 2014 results after markets closed Wednesday. The search engine behemoth reported adjusted diluted earnings per share (EPS) of $6.27 on revenues of $15.4 billion including traffic acquisition costs (TAC). Analysts were estimating EPS of $6.41 on revenues of $15.5 billion according to The Wall Street Journal.

Excluding traffic acquisition costs of $3.23 billion, Google’s revenues totaled $12.2 billion for the quarter. The majority of TAC — $2.39 billion — was paid to Google’s network members. Another $845 million was paid to distribution partners and others who direct traffic to Google’s website.

ALSO READ: The Perils of the New Google Stock Classes

Paid clicks rose 26% year-over-year and declined about 1% sequentially, while cost-per-click fell 9% year-over-year and was flat sequentially. The paid-click rate fell short of an analysts’ estimate of 33%.

The company’s CEO said:

We got lots of product improvements done, especially on…

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