Google's 2014 first-quarter revenue has fallen short of Wall Street expectations as the price of its ads declined. In turn, the shares went down by 5.7 percent at $525 in after-hours trading on Wednesday.

The search giant reported a first quarter net income of $3.45 billion, which translated to $5.04 per share. The reported non-GAAP earnings were $6.27 per share on a revenue of $15.42 billion, including traffic acquisition costs. Notably, Google's revenue was up 19 percent year-over-year.

Overall, Google derived its 57 percent of earnings from the U.S., which is a 1 percent increase from the previous quarter.

Although during the regular trading hours Google surged to 4 percent in the after-hours trading, once the quarterly reports were out, Google was down more than 4 percent.

Also, in the previous quarter, Google reported a revenue of $16.86 billion, including traffic acquisition costs, and GAAP earnings per share of $9.90.

For this quarter, Google's cost-per-click rate with respect to ads fell 9 percent. But the total paid clicks rose to 26 percent.

The increase in paid-clicks will not let the search giant to take a breather because the reduction in per-click percentage clouds the gain. It is becoming more clear that Google cannot command the way it used to charge for paid clicks any more. Hence, it is crystal clear that per-click decline contributed to Google's drop in earnings.

The other pull-down comes in the form of Google's divested Motorola arm of the company that totaled $198 million in the period. It is a raise from $182 million in the year-ago period. This decline is described as "net Loss from discontinued operations."

The past quarter was not smooth for Google after the Motorola Mobility problem. Hence the company was expected to perform better this quarter but the revenue from ads took a beating on Wednesday.

According to CNet, "Most of the Motorola unit will be on its way out soon enough following the announcement of its sale to Lenovo in January, but the beleaguered parts of the hardware maker are still with the Google."

But Larry Page was quite optimistic when asked to comment on the results. The CEO of Google said, "We completed another great quarter. Google's revenue was $15.4 billion, up 19 percent year on year. We got lots of product improvements done, especially on mobile. I'm also excited with progress on our emerging businesses."

Google did not meet market expectations this quarter. The Wall Street is expecting Google to report earnings of $6.36 per share on a revenue of $15.75 billion in the current quarter.