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-center 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.