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

Is AI on course to take over human creativity?

Computers and artificial intelligence have come along at an exponential rate over the past few decades, from being regarded as oversized adding machines to the point where they have played integral roles in some legitimately creative endeavours.

Jason Dooris

CEO and founder, Atomic 212

Are you leading technology changes or is technology leading you?

In a recent conversation with a chief technology officer, he asserted all digital technology changes in his organisation were being led by IT and not by marketing. It made me wonder: How long a marketing function like this could survive?

Jean-Luc Ambrosi

Author, marketer

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.

Great article, Thanks for sharing with us. I would like to recommended list of top customer loyalty software for small to large scale of ...

Matts Frigian

How brands are ramping up customer loyalty program spending in 2017

Read more

“We’re in an arms race for finite attention.”What a statement that is. I am so glad that someone of Steve's caliber comes out about the m...

Peter Strohkorb

Marketo CEO: Ditch the volume game, focus on value

Read more

Hello Greetings for the day. As I am also looking to stabilize gym with Hypoxi in india place called Delhi. And I have gone through your ...

Dhruv singh

Goodlife gets business ‘in shape’ with real-time analytics

Read more

Thanks for picking this up. We are always happy to add richness to our products and in turn the lives of our followers and fans.

Fitbit Middle East

​Fitbit announces new virtual race platform to enhance customer experience

Read more

Thanks for a very interesting article. B2B marketing seems tricky. I think that marketing plays a vital part - it can build the brand and...

Aaren

From tactical overhead to strategic growth driver: B2B marketing in the digital age

Read more

Latest Podcast

More podcasts

Sign in