Google announced earnings last week and for the first time in a long time, those earnings did not beat expectations.

The main concern from investors is the 6% drop in cost per click (CPC) prices. While we’ve seen a 2-4% decrease in those prices, it seems the 6% scared many.

For the quarter, EPS came in at $9.56 per share on revenues of $14.1 billion. Analysts had been looking for $10.80 and $14.4 billion respectively.

Here are some of the highlights from the huge earnings report:

$14.11 billion for the quarter ended June 30, 2013, an increase of 19% compared to the second quarter of 2012.
GAAP operating income in the second quarter of 2013 was $3.12 billion, or 22% of revenues. This compares to GAAP operating income of $3.24 billion, or 27% of revenues, in the second quarter of 2012.
Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our Network members, increased approximately 23% over the second quarter of 2012 and increased approximately 4% over the first quarter of 2013.
Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our Network members, decreased approximately 6% over the second quarter of 2012 and decreased approximately 2% over the first quarter of 2013.
As of June 30, 2013, cash, cash equivalents, and marketable securities were $54.4 billion.

Bad bad bad numbers Google. 🙂

Forum discussion at WebmasterWorld.