Google misses by $0.25, misses on revs
Reports Q4 (Dec) earnings of $6.88 per share, $0.25 worse than the Capital IQ Consensus Estimate of $7.13; revenues rose 15.2% year/year to $18.1 bln vs the $18.44 bln consensus.
GOOG Site Revenues +18% compared to +20% in Q3.
* Revenues and Monetization
Sites Revenues - Our sites generated revenues of $12.43 billion, or 69% of total revenues, in the fourth quarter of 2014. This represents an 18% increase over fourth quarter 2013 sites revenues of $10.54 billion.
Network Revenues - Our partner sites generated revenues of $3.72 billion, or 20% of total revenues, in the fourth quarter of 2014. This represents a 6% increase over fourth quarter 2013 network revenues of $3.52 billion.
Other Revenues - Other revenues were $1.95 billion, or 11% of total revenues, in the fourth quarter of 2014. This represents a 19% increase over fourth quarter 2013 other revenues of $1.65 billion.
International Revenues - Our revenues from outside of the United States totaled $10.23 billion, representing 56% of total revenues in the fourth quarter of 2014, compared to 58% in the third quarter of 2014 and 56% in the fourth quarter of 2013.
* Paid Clicks and Cost per Clicks
Paid Clicks increased approximately 14% y/y and 11% q/q.
Cost-Per-Click decreased approximately 3% y/y and q/q. Cost-per-click for Google sites decreased approximately 8% y/y and q/q.
* Expenses
Operating expenses, other than cost of revenues, were $6.78 billion in the fourth quarter of 2014, or 37% of revenues, compared to $5.03 billion in the fourth quarter of 2013, or 32% of revenues.
Free cash flow was $2.81 billion compared to $2.98 billion in the fourth quarter of 2013. We expect to continue to make significant capital expenditures.