Skip to main content

Google Q2 revenue up 22%, overshadows slow growth


SAN FRANCISCO: Google's earnings rose modestly in the second quarter as the internet company's expensive ambitions devoured most of a surprisingly strong gain in revenue.
The report released on Thursday also showed that Google's advertising prices are still dropping to extend a nearly three-year slump.
Meanwhile, the company's expenses are steadily rising as it hires more workers, promotes products and ventures into new technological frontiers such as internet-connected eyewear, driverless cars and robots.
Those trends have frustrated many investors, causing Google's stock to lag the broader market this year even though most analysts still view the company as a prudent long-term investment. The company's shares had gained 4% through Thursday's close, compared to a 6% increase in the Standard & Poor's 500 index.
Investors saw more positives than negatives in the second-quarter numbers as Google's stock added $5.74 to $579.47 in extended trading.
Besides reviewing its second quarter, Google also announced chief business officer Nikesh Arora is leaving the company after a decade to become a top executive at SoftBank. He will be replaced on an interim basis by Omid Kordestani, Google's original advertising chief.
Arora is being allowed to keep an $8 million bonus that he was supposed to repay to Google if he left the company before April 25, 2015. In a Thursday regulatory filing, Google said it was waiving the requirement imposed on Arora when he received the bonus in 2012.
Google earned $3.4 billion, or $4.99 per share, during the April-June quarter. That compared to income of $3.2 billion, or $4.77 per share, in the same period last year.
If not for the costs of employee stock compensation, Google said it would have earned $6.08 per share. That figure missed the average analyst target of $6.23 per share, according to FactSet. It marks the third time in the last four quarters that Google's adjusted earnings have fallen below analyst estimates.
Revenue totaled nearly $16 billion, a 22% increase from a year ago.
After subtracting the commissions paid to Google's advertising partners, revenue stood at $12.8 billion — nearly $500 million above analysts' projections.
Excluding its cost of revenue, Google's core expenses in the second quarter jumped 26% from last year.
The increase included the addition of another 2,200 employees during the quarter. Google hired about 4,300 employees through the first half of the year to increase its payroll to about 52,000 people. The expansion contrasts with a contraction at one of its main rivals, Microsoft, which announced plans to lay off 18,000 workers on Thursday.
Google's revenue growth is being held back by a persisting decline in the average prices for the ads that appear alongside search results and other web content, a measure known as "cost per click." The average price fell by 6% from the same time last year, marking Google's 11th consecutive quarter of erosion.
Ad prices have been sagging because marketers haven't been willing to pay as much to pitch consumers who are squinting at the smaller screens on the smartphones that are drawing eyeballs away from desktop and laptop computers. Google executives are confident advertisers eventually will be willing to pay more to connect with prospective customers on smartphones and tablets as mobile computing becomes even more pervasive.
The desktop-to-mobile transition would be hurting Google even more if people weren't clicking on ads more frequently. The volume of activity is important because Google bills advertisers when people click on a promotional link. Google's paid clicks during the second quarter climbed 25% from last year.
Although Google still makes most of its money from internet searches, the company has been generating more revenue from other channels such as YouTube and its Play store that sells content and applications for the more than 1 billion devices running on its Android software.
Google executives consistently say YouTube is attracting more advertisers without providing specifics. The research firm eMarketer is expects YouTube's ad revenue to total $5.6 billion this year, a 51% increase from last year.
The Mountain View, California company also doesn't disclose its Play sales, but says the mobile store generates most of its revenue outside of digital ads. Google's non-ad revenue totaled $1.6 billion in the second quarter, a 53% increase from last year.

Comments

Popular post

Business Mobile Phones now from Intel

Beside the look this mobile phone also have some features which can blow your mind … such are qwetry keypad, two usb port, stereo speakers, oled technology, card reader and yes a cherry on top is a TRACK BALL as well. We have seen Squared Shape Mobile Phone or hole mobile phone but this antique piece from intel is amazing. Designer: Jan Rytir Business-Mobile-Phones-intelmid-1 Business-Mobile-Phones-intelmid-2 Business-Mobile-Phones-intelmid-3 Business-Mobile-Phones-intelmid-4 Business-Mobile-Phones-intelmid-5 Business-Mobile-Phones-intelmid-6 Business-Mobile-Phones-intelmid-7 Business-Mobile-Phones-intelmid-8 Business-Mobile-Phones-intelmid-9 Business-Mobile-Phones-intelmid-10 Business-Mobile-Phones-intelmid-11

Browse Facebook Without Mouse - Keyboard Shortcuts

If you think you need a mouse to browse Facebook on your desktop computers, think again. You can browse through your facebook pages without having a mouse using only your keyboard shortcuts. Check out some of these Facebook hidden keyboard shortcuts..The list is not that long but will give you a good basic functionality. ALT + (Shift + 1)(!) - Facebook Home ALT + (Shift + 2)(@) - Your Wall Page ALT + (Shift + 3)(#) - Friend Requests ALT + (Shift + 4)($) - Messages ALT + (Shift + 5)(%)- Notifications ALT + (Shift + 6)(^) - Account Settings ALT + (Shift + 7)(&) - Privacy Settings ALT + (Shift + 8)(*) - Facebook's facebook profile ALT + (Shift + 9)(() - Terms Of Service page ALT + (Shift + 0)()) - Help Center ALT + ? - Search Facebook ALT + Shift + m -- Compose new message

Business Mobile phone with young generation touch

In our last business mobile phone section you have seen great Business Mobile Phones now from Intel , now this time we are also coming with the business mobile phone but with the touch to young generation as well. However this business mobile phone is just now a concept only but as the demand of people and customers are increasing company will also come with this. You know many tools with folding option now such options are also available in mobile phone with three folded screen which can make it in a wide screen to watch movie or with the help of 3G any live sports as well. Designer: Petr Kubik Business-Mobile-Phones-with-folding-screen-1 Business-Mobile-Phones-with-folding-screen-2 Business-Mobile-Phones-with-folding-screen-3 Business-Mobile-Phones-with-folding-screen-4 Business-Mobile-Phones-with-folding-screen-5 Business-Mobile-Phones-with-folding-screen-6 Business-Mobile-Phones-with-folding-screen-7 Business-Mobile-Phones-with-folding-screen-8 Business-Mobile-Phones-wit