Google reported a 22 per cent rise in second quarter revenues on Thursday, with sales reaching $16 billion.
But the company’s continued spending on potential new businesses like self driving cars and ultra fast internet networks hit Google’s bottom line. The web software giant posted weaker than expected earnings with profit per share of $6.08 compared to an expected $6.25.
Google also announced that long-time chief business officer Nikesh Arora was leaving the company to join Softbank as vice chairman, with former sales chief Omid Kordestani replacing him.
“Google had a great quarter,” said Patrick Pichette, CFO of Google. “We are moving forward with great product momentum and are excited to continue providing amazing user experiences, with a view to the long term.”
Revenue from Google’s websites rose 23 per cent to $10.94 billion, while the company sales through its network business, which includes affiliate sites, climbed 7 per cent to $3.42 billion. Operating expenses climbed to $5.58 billion from $4.45 billion in the year-ago quarter. Google also said it spent $2.65 billion in capital expenditures, most of which covered data-centre construction, real estate purchases and production equipment.
The company said its workforce includes a total of 52,069 employees, up from 49,829 as of March 31.