Google has thrown its quarterly financial results on the pile alongside Apple, Microsoft, Samsung, Huawei, and LG. The company today announced fourth quarter financials alongside yearly financials for the fiscal year and quarter ended December 31st.
The search giant reported $66 billion in annual revenue for 2014, a 19% increase compared to 2013. This includes $18.10 billion in consolidated revenues for the fourth quarter, up 15% from the same period in 2013.
Over all though, Google fell short of expectations for its net revenue and earnings per share for Q4. Fourth quarter adjusted earnings per share rang in at $6.88, which is up from Q4 2013 ($6.70) but not quite the $7.12 Wall Street was expecting. Net revenue, $14.48 billion, was also just shy of expectations.
Google CFO Patrick Pichette said on the company’s earnings call that the strong U.S. was partly to blame for revenues falling short. He also said that Google had problems securing enough Nexus 6 inventory. We were afforded a brief mention of Google Glass, though it wasn’t direct. Pichette told investors that when teams don’t hit hurdles, Google will sometimes ask them to “take a pause and take the time [to] reset their strategy, as we recently did in the case of Glass.” He went on to say that Glass didn’t have the impact the company had hoped. In those instances, it seems the company has no problem making the decision to cancel a project.
This is the second quarter in a row that Google’s quarterly earnings have fallen short of expectations. For Q3, Wall Street was expecting just over $6.50 EPS. Google delivered $6.35 per share when it announced its quarterly earnings just after the unveiling of Lollipop and the latest crop of Nexus hardware. Google shares took a dive immediately after it announced today’s results but have since recovered.