Google reported earnings that missed expectations while revenue topped Wall Street estimates on Thursday. Shares rallied in extended hours trading.
The Internet giant reported earnings of $6.08 per share, excluding one-time items, on revenue of $15.96 billion.
Analysts had expected the company to report earnings excluding items of $6.24 a share on nearly $15.62 billion in revenue, according to a consensus estimate from Thomson Reuters.
"Google had a great quarter with revenue up 22 percent year-on-year, at $16.0 billion", said Patrick Pichette, CFO of Google, in a press release. "We are moving forward with great product momentum and are excited to continue providing amazing user experiences, with a view to the long term."
Google Class A shares rallied more than 1 percent in extended hours trading. (Click here to get the latest quotes for Google.)
Revenue for the search engine conglomerate increased 22 percent in the second quarter as it saw strong demand for ads on its websites. Analysts had been expecting the Internet giant to discuss falling online ad prices, which remain Google's biggest source of revenue.
Aggregate paid clicks, including those related to ads served on Google sites and the sites of network members, increased about 25 percent over the same period in 2013 and 2 percent over the first quarter of 2014, the company said in a release. Average cost-per-click, including the same sites, declined about 6 percent over the same period in 2013 and remained constant from the first quarter of 2014.
Google will account for more than a third of global digital ad spending this year, Dow Jones reported.
The second-quarter report reflected the stock split in April 2014 when Google offered shareholders a single-time special dividend of nonvoting Class C shares.
The company also announced that its longtime sales boss, Nikesh Arora, is heading to a top job at tech conglomerate Softbank.
Results excluded those of Motorola Mobile, which Google agreed to sell to Lenovo in January 2014.
Continuing its diversification into other businesses, the company recently announced it will work with drug maker Novartis to develop "smart contacts" for eyesight that can help patients also monitor their glucose levels and restore focus to their eyesight, according to Reuters.
Its newly acquired Nest division also unveiled a new industry group to promote the use of Nest's Thread standard for "smart" devices made for use in homes, cars, and elsewhere, according to other coverage in Reuters. The group counts Samsung, ARM Technologies, Freescale Semiconductor, and Yale Locks among its members.
—By CNBC.com staff