Google (GOOGL) revealed disappointing third-quarter profits on Thursday, sending shares of the search heavyweight falling more than 2% in extended trade.
The company posted net income of $2.81 billion, or $4.36 per diluted share, from $2.97 billion, or $4.66 a diluted share, in the same three months in 2013.
On an adjusted basis, earnings came in at $6.35 a share, weaker than $5.63 in the year-ago period, and missing Wall Street estimates of $6.54 a share.
Looking at the Mountain View, Calif-based company’s top-line performance, revenues spiked 20% to $16.5 billion. Sales excluding so-called traffic acquisition costs totaled $13.17 billion, narrowly trailing expectations in a FactSet poll of $13.2 billion.
“We continue to be excited about the growth in our advertising and emerging businesses,” Google CFO Patrick Pichette said in a statement.
Still, cost-per click, a key metric for online advertising companies, was off 2% from the 2013 period, and flat for the second quarter.
Google’s class-A shares slumped 2.8% in extended trading Thursday, extending a year-to-date loss of 4.3%. The tech-heavy Nasdaq composite is up just south of 1% for 2014.