Mobile continues to bug Google.
The company's Motorola smartphone division continues to lose money, and a rise in mobile ads has squeezed the company's profits.
The search giant reported that its second-quarter net income rose to $3.23 billion, or $9.56 cents per share. Though profit rose 15% from last year, Google's results badly missed Wall Street analysts' earnings expectations of $10.78 per share.
Google's sales jumped to $14.1 billion, up 19% year-over-year. That also fell short of analysts' estimates of $14.4 billion.
Growth in mobile ads drove down the average cost per click on ads served by Google by 6%, when compared to the same period last year. That's the seventh consecutive quarterly decrease.
The number of paid clicks rose 23%, but advertisers still refuse to pay as much for mobile ads as they do for desktop ads. That's why the average cost-per-click has fallen even as the number of paid clicks increase.
Shares of Google feel 5% in after-hours trading. Google's stock price had been steadily rising this year, gaining more than $200 in 2013.
Google rival Yahoo reported quarterly results on Tuesday. Yahoo's sales fell slightly short of both Wall Street's expectations, but it also recorded a 46% jump in quarterly profit when compared to the same period a year ago. Microsoft also reported disappointing quarterly earnings Thursday.