Google Q2 Earnings Tops Analyst Estimates Thanks To Mobile Ads And YouTube
Another quarter is in the books for Google, which this time around was worth $17.7 billion in revenue, an 11 percent increase compared to the same period a year ago. After deducting traffic acquisition costs (TAC), Google was left with $14.35 billion in revenue, a figure that's millions of dollars higher than analysts were expecting.
Suffice to say, Google held its position as the second most valuable company in the U.S., trailing only Apple for the top spot. With its stock price surging more than 12 percent to $651.66 per share after making its financial report public, Google has a market capitalization of $423 billion, compared to Apple's $742.4 billion.
"Our strong Q2 results reflect continued growth across the breadth of our products, most notably core search, where mobile stood out, as well as YouTube and programmatic advertising," said Ruth Porat, CFO of Google. "We are focused every day on developing big new opportunities across a wide range of businesses. We will do so with great care regarding resource allocation."
Advertising continues to be Google's bread and butter. Total revenues from ads came to more than $16 billion, which is also an 11 percent increase year-over-year. After counting for expenses, Google's net income came to $3.93 billion on a GAAP basis, up from $3.35 billion a year ago, or $4.83 billion on a non-GAAP basis, up from 4.1 billion in June of last year.
Interestingly, the cost per click (CPC) -- advertisers get paid when users click on ads -- fell 11 percent, though the sheer number of ads made up for the decline. This means that clicks are worth less than before, which wasn't unexpected during a mass market shift to mobile, though over time it could be cause for concern if it keeps going down.
Suffice to say, Google held its position as the second most valuable company in the U.S., trailing only Apple for the top spot. With its stock price surging more than 12 percent to $651.66 per share after making its financial report public, Google has a market capitalization of $423 billion, compared to Apple's $742.4 billion.
"Our strong Q2 results reflect continued growth across the breadth of our products, most notably core search, where mobile stood out, as well as YouTube and programmatic advertising," said Ruth Porat, CFO of Google. "We are focused every day on developing big new opportunities across a wide range of businesses. We will do so with great care regarding resource allocation."
Advertising continues to be Google's bread and butter. Total revenues from ads came to more than $16 billion, which is also an 11 percent increase year-over-year. After counting for expenses, Google's net income came to $3.93 billion on a GAAP basis, up from $3.35 billion a year ago, or $4.83 billion on a non-GAAP basis, up from 4.1 billion in June of last year.
Interestingly, the cost per click (CPC) -- advertisers get paid when users click on ads -- fell 11 percent, though the sheer number of ads made up for the decline. This means that clicks are worth less than before, which wasn't unexpected during a mass market shift to mobile, though over time it could be cause for concern if it keeps going down.
