Google sales jump despite mixed ads results

While paid clicks rose, the cost per click dropped in the second quarter

Google's revenue rose to $15.9 billion in the second quarter, while net income was $3.4 billion.
Google's revenue rose to $15.9 billion in the second quarter, while net income was $3.4 billion.

Google's core advertising business helped to propel a 22 percent increase in sales during the second quarter, even while the cost of its ads dropped.

Revenue for the quarter ended June 30 was US$15.96 billion, Google said Thursday, beating the forecast of $15.62 billion, from analysts polled by Thomson Reuters.

Net income was $3.42 billion, up nearly 6 percent from $3.23 billion in the second quarter of 2013.

The company's earnings per share, excluding certain expenses, was $6.08, a disappointment to analysts expecting $6.24 in earnings.

Thursday's results marked the first time Google separated out the money it makes from ads placed on its own sites like and YouTube, versus the ads on outside sites.

The numbers showed the paid clicks on Google's own sites rose by 33 percent, suggesting a strong core business. Paid clicks on outside sites rose by roughly 9 percent.

But the cost-per-click dropped by roughly 7 percent on Google's sites. The cost dropped by 13 percent on outside sites. The drop could be due to the lower price of ads on mobile devices.

Still, "Google had a great quarter," CFO Patrick Pichette said in a statement.

The company also said that Nikesh Arora, Google's chief business officer, will be leaving the company after 10 years with Google. He will be replaced for now by Omid Kordestani, Google's business founder, the company said.

Google shares were trading up after hours Thursday at $582.33, after closing at $573.73.

(More to follow.)

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

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

People in vegan houses shouldn't throw bacon

Picture this. You’re at a Gourmerican burger joint chomping a cheeseburger, when an outspoken vegan friend starts preaching that you’re killing the planet. Last week, that same vegan downed a pricey glass of pinot before their flight to a far-flung destination, armed with their strongest mossie repellant and first aid kit. Anything amiss?

Abbie Love

Strategist, Ikon Communications

The role of the CMO is evolving: Are you keeping up?

My (amazing) vacation in the Galapagos Islands earlier in the year got me thinking about Charles Darwin and his theory of evolution. What does this have to do with the role of today’s CMO, you ask? Plenty.

Sheryl Pattek

Vice-president, executive partner

Getting your business ready for the Entrepreneurial Consumer

We all know the digital revolution has completely transformed the way consumers are interacting with brands, and that a lot of businesses are finding it hard to catch up. One way to closing this brand gap is to understand consumer behaviour and build a brand experience that meets these new needs.

Pip Stocks

CEO and founder, BrandHook


Kerry Edwards

Open Colleges taps into social for better student interaction

Read more

Or just go to sites like www.shopsthatshiptoaustralia.c... and others and be sure that the stores will send to where you live :-)


Why online shopping is like dating – RedBalloon CEO

Read more

Personalisation is the key. Customers demand a very relatable and well defined CX where the sincerity and understanding of their disposit...

Hitesh Parekh

In pictures: Improving cutomer experiences through smart personalisation

Read more

Thanks for this. The key for me is the effective of governance where it dictates and sets the proactive policy when it comes to CX. Tech ...

Hitesh Parekh

6 lessons in modern marketing from a customer experience chief

Read more

Very well said “With today’s consumers more demanding of the brands and merchants they shop, it’s imperative for merchants to not just co...


CMO's top 10 martech stories for this week - 29 September

Read more

Latest Podcast

More podcasts

Sign in