Google’s revenue grew 15 percent in the fourth quarter but fell short of Wall Street’s target thanks to declining online ad prices and unfavorable foreign exchange rates.
The outfit appears to be losing ground to Facebook on the advertising front. Facebook reported on Wednesday that mobile ads on its network doubled year-over-year during the fourth quarter.
Google said the “cost per click,” decreased 3 percent year-over-year in the fourth quarter, while the number of consumer clicks on its ads increased 14 percent.
Analysts had expected gains in cost-per-click and they are now saying that Google’s business is slowing and it is going to look worse as the dollar strengthens.
Consolidated revenue in the three months ended Dec. 31 totalled $18.10 billion, compared to $15.71 billion in the year-ago period. Wall Street expected revenue of $18.46 billon.
Chief Financial Officer Patrick Pichette said in a statement that revenue grew “despite strong currency headwinds”.
Net income rose to $4.76 billion from $3.38 billion a year earlier.