Revenue rose 6.9% to $14.5 billion, the company said Thursday, missing analysts' average projection for $14.7 billion, according to estimates compiled by Bloomberg.
Chief Executive Larry Page is battling
"People wanted to see that improve," said Colin Gillis, an analyst at BGC Partners in New York.
The shares of Mountain View, Calif.-based Google were little changed in extended trading after the release of earnings. The stock advanced less than 1% to $513.23 at the close.
Fourth-quarter net income rose 41% to $4.76 billion, or $6.91 a share, from $3.38 billion, or $4.95, a year earlier. Profit, excluding some items, was $6.88 a share, compared with analysts' average projection for $7.11.
Google's share of the online-ad market is coming under pressure as more users spend time on smartphones and tablets. The company, which has introduced services encouraging marketers to use its mobile features, saw its share of global mobile-ad revenue decline to 41% in 2014, from 47% in 2013, while Facebook's rose to 18% from 17%, according to EMarketer Inc.