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San Francisco - Google said Thursday its second-quarter profit rose 16% from a year ago, but its results fell far short of market expectations.
The Internet giant reported a profit of $3.23bn, up from $2.79bn a year ago. The adjusted earnings translated to $9.56 per share, far below Wall Street expectations of $10.78.
Revenues were up 19% to $14.11bn, also below most analyst forecasts.
Google shares tumbled 4.9% in after-hours trade on the news to $866.21, in a retreat from the Internet giant's record run toward the $1 000 level.
Chief executive Larry Page put a positive spin on the report.
"Google had a great quarter with over $14bn in revenue - up 19% year-on-year," said Page.
"The shift from one screen to multiple screens and mobility creates tremendous opportunity for Google.
"With more devices, more information, and more activity online than ever, the potential to improve people's lives even more is immense," he said.
Google said 55% of its revenues, or $7.2bn, came from outside of the United States, roughly the same amount as the past quarter and the same period last year.
Revenues from Motorola Mobile, the handset maker it acquired last year, were $998m, up from $843m in the same period a year ago.
But the unit posted an operating loss of $342m, wider than the $199m loss a year earlier.
Page, in comments to company's earnings conference, said the results represent an "amazing performance for a company that has yet to celebrate its fifteenth birthday!"
He added, "I am so excited
about the velocity and execution on our platforms, apps and devices...
the potential for technology to make people's lives better is
tremendous. But to achieve that potential we need to stay focused.
"It's why we continue to invest the vast majority of our resources and time in our core products."
The results were released at the same time fellow tech giant Microsoft also released results shy of expectations, sending its shares tumbling.
Microsoft took a charge of $900m for "inventory adjustments" of its entry-level Surface, which has failed to gain traction in the tablet market.
