Google reported $14.11 billion in revenue, net income of $3.23 billion, and earnings per share of $9.56, missing Wall Street's expectations.
Analysts had high hopes for Google this quarter. Morgan Stanley was predicting revenues would be 20 percent higher than they were a year ago and that YouTube, which has reportedly upped its payments to partners by 60 percent, would be a big driver of this revenue growth. The consensus on Wall Street was that Google would deliver $14.5 billion in revenue and earnings of $10.80 per share.
In the second quarter of 2012, Google had $12.21 billion in revenue and income of $2.79 billion. So Google's revenue grew 15.56 percent year over year and it's net income was up as well. Earnings per share were down year over year.
For the last two quarters Google CEO Larry Page has been talking up the new phones the company would deliver from Motorola, specifically the Moto X superphone. "Think about your device. Battery life is a huge issue," said Page. "You shouldn’t have to worry about constantly recharging your phone. When you drop your phone, it shouldn’t go splat. Everything should be a ton faster and easier. There’s real potential to invent new and better experiences."
You can listen in to the earnings call below.
"I love using Google Glass," CEO Larry Page said on the call, when asked about what new hardware Google might build big businesses around. "It feels like I'm living in the future."
You can find Page's full opening remarks from the call here.