The reports detailed that Google's net income was down 20% to $2.18bn (£1.35bn) though revenue climbed 45% (as it did the previous quarter) to reach $14.1bn.
According to Sarah Shearman of Brand Republic:
Yesterday’s report was the first full quarter results since Google acquired the loss-making mobile hardware business Motorola Mobility for $12.5bn in May this year. The figures show that Google is yet to turn it around, making a $527m loss.
In terms of ad revenue, Google made $11.53bn, up 18% year on year. Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of its network members, dropped about 15% from the third quarter of 2011.
The documents were issued to the Securities and Exchange Commission nearly four hours early, complete with blank area noted with "PENDING LARRY QUOTE" as the header.
According to Bloomberg:
The snafu upstaged another Google event, the release of a Chromebook computer, hitting during a press conference in San Francisco and prompting several reporters to rush out to cover the results.
In a bid to calm the ensuing hysteria and right the ship, Chief Executive Larry Page released his prepared statement:
"We had a strong quarter. Revenue was up 45% year-on-year, and, at just fourteen years old, we cleared our first $14bn revenue quarter. I am also really excited about the progress we’re making creating a beautifully simple, intuitive Google experience across all devices."
"We had a strong quarter. Revenue was up 45% year-on-year, and, at just fourteen years old, we cleared our first $14bn revenue quarter. I am also really excited about the progress we’re making creating a beautifully simple, intuitive Google experience across all devices."
Page later issued a statement, pointing the blame toward financial printer RR Donelley & Sons for the "human error."
"Earlier
this morning RR Donnelley, the financial printer, informed us that they
had filed our draft 8-K earnings statement without authorization. We have ceased trading on NASDAQ
while we work to finalize the document. Once it's finalised we will
release our earnings, resume trading on Nasdaq and hold our earnings
call as normal."
As a result of the release mistake and the disappointing contents of the quarter, Google saw nearly $22bn wiped off its market value, dropping them below rival Microsoft, having only overtaken its their competitor earlier in October.
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