By Tess Stynes
Google Inc. reported disappointing revenue growth in the holiday
quarter amid further indications of slowing growth in its maturing
search-advertising business.
The amount Google receives per ad click is decreasing as the
number of clicks increases. Clicks on advertiser links next to
Google's search results increased 14% from a year earlier, but the
amount Google got paid per click fell 3% from a year earlier.
Fear of slowing revenue growth in Google's core search
advertising business matures has been a key reason why the
company's shares have fallen in recent months. Google has two
faster-growing businesses in YouTube and the Google Play Store, but
those units remain small compared with search.
For the latest period, Google said revenue rose to $18.1 billion
from $15.7 billion, but it fell below the $18.46 billion recently
expected by analysts polled by Thomson Reuters.
Overall, Google reported a profit of $4.76 billion, or $6.91 a
share, up from $3.38 billion, or $4.95 a share, a year earlier.
Excluding stock-based compensation, discontinued operations and
other items, per-share earnings rose to $6.88 from $6.70.
Analysts had expected earnings of $7.11 a share.
Shares of Google fell 3.6% in recent after-hours trading.
Write to Tess Stynes at tess.stynes@wsj.com
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