Google has announced their earnings report for the fourth quarter and 2013 fiscal year. The company reported $16.86 billion in revenue and earnings of $12.01 a share. While revenue topped expectations, EPS missed the mark. Wall Street analysts were expecting EPS of $12.26 on $16.75 billion in revenue.
In the same period a year prior, Google reported EPS of $8.62 on $14.4 billion in revenue. The company reported profits of $4.10 billion in the fourth quarter, up 15 percent over $3.57 billion from the same period a year ago. Although the average cost-per-click (CPC) decreased 2 percent during Q4, overall ad revenue increased due to a 31 percent increase in paid clicks in 2013, up 13 percent in Q4.
"Revenue growth was driven by content and app sales in the play store," said Patrick Pichette, Google's chief financial officer. According to him, release of Nexus 5 and strong demand for the Chromecast also helped.
Motorola Mobile's operating loss in the fourth quarter of 2013 was $384 million. This is more than twice the loss of $152 million in the year-ago quarter. Putting an end to the story, Google announced yesterday that it has agreed to sell Motorola to Lenovo in a deal worth $2.91 billion.