Consumer shift to mobile devices boosts Google's revenue

CEO Larry Page lauded the results as representative of a 'great quarter' for the company

Google's second-quarter revenue increased by 19 percent to about US$14 billion, aided by consumers' shift to mobile devices, the company announced Thursday.

The Internet company generated sales of US$14.11 billion for the quarter, which ended June 30. The revenue excludes the commissions and fees that Google pays to other sites that run its ads. Taking those into account, the company's second-quarter revenue was $11.1 billion.

The company's second-quarter rise in revenue constitutes a moderate slowdown in revenue gains of 31 percent that Google reported in April, but is up 19 percent compared to the year-ago quarter.

Google also posted net income of $3.23 billion, or $9.54 a share, up roughly 16 percent from $2.79 billion, or $8.42 a share, in the second quarter of 2012. But net income dipped slightly from the $3.35 billion reported in the first quarter of this fiscal year.

Still, it was "a great quarter," Google CEO Larry Page said in the company's earnings announcement. "The shift from one screen to multiple screens and mobility creates tremendous opportunity for Google," he said.

"With more devices, more information, and more activity online than ever, the potential to improve people's lives even more is immense," he added.

Google saw more mixed results within its advertising business. Paid clicks, or the clicks on search ads that advertisers pay for, increased approximately 23 percent over 2012's second quarter.

However, the cost of paid clicks, or the money Google charges when someone clicks on an ad, fell by 6 percent compared to the same period last year.

Google-owned sites generated 68 percent of the company's total revenue in the quarter, at $8.87 billion, Google reported, representing an 18 percent increase over 2012's second quarter. Partner sites contributed revenue of $3.19 billion, or 24 percent of total company sales. "Other" revenue from Google was $1.05 billion, representing a 138 percent increase, the company said. It did not provide information about sources for that revenue.

Meanwhile, Google's Motorola mobile revenue, which includes hardware, was $998 million, representing 7 percent of consolidated revenue for the quarter, the company reported, up from $843 million in the year-ago period.

Google bought Motorola Mobility last year for more than $12 billion; the closely watched Moto X smartphone is expected to launch this summer.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Disruption Down Under – What’s Amazon’s real competitive advantage?

Savvy shoppers wait in anticipation, while Australian retailers are gearing up for the onslaught. Amazon’s arrival is imminent.

Change across the board: Why boards need to digitally evolve

Traditionally the non-executive board of a company acts in an advisory capacity - attending monthly board meetings to offer overarching advice and guidance typically focusing on:

Jodie Sangster

CEO, ADMA

The most desirable customers you’ve overlooked

“What will really move the needle?” This is a question that keeps leaders awake at night. And at the intersection of some of their top priorities – finding pockets of growth, redefining the customer experience, and making an emotional impact – lies a latent market: Their diverse customers.

Really inspiring !

Goldenboy Media

Jaywing sets sights on Australian growth with digital and data-driven agency model

Read more

Being aware of regulations or guidlines is just the start. As our CEO Emma Lo Russo stated exactly two weeks ago at an event we supported...

Alan Smith

​Are the Wild West days of influencer collaboration over?

Read more

Rebranding is always nice solution to get better organisation. Businessman may apply certain special services (for example, https://www.l...

David Hill

CMO interview: Spearheading the global rebranding of OFX

Read more

Thank you so much for sharing this article.Top Digital Marketing company in Bangalore

Way To DM

Predictions: 17 digital marketing trends for 2017

Read more

Thanks for the great article Jodie, agree many boards and senior execs are operating in outdated modes, just as we need some reverse soci...

sharyn

Change across the board: Why boards need to digitally evolve - Data-driven marketing - CMO Australia

Read more

Latest Podcast

More podcasts

Sign in