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 Google.com 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 zach_miners@idg.com

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Behaviour change, by design

​We’re living in an age of unprecedented change. We experience with Oculus Rift, invest with Acorns, consume video through Hyper, tune into Pandora and navigate with Waze.

Glen Jeffreys

Head of UX, Deepend Group

Chat bots: How to use them commercially right now

I’m sure that many of you out there have heard a lot about chat bots (aka messaging bots) recently, and the fact that they are here to stay is pretty evident by now.

Deniz Nalbantoglu

Managing director, Webling-Interactive

Top tips to uncovering consumer insights for business innovation

An in-depth understanding of consumers sits at the heart of what we all need to do, but we know it’s not always easy to uncover insights that will unlock a true innovation opportunity.

Matt Whale

Managing director, How To Impact

Great read, thanks for posting. MR should be seen as the holy grail for marketers and brands, as it offers an unprecedented capability to...

Barney

Interview: The business case for mixed reality in marketing

Read more

what a load of shit, and what a major stuff up... the new brand device is sterile, boring and just plain bad. Would be better suited to a...

James Yoi

Tennis Australia unwraps new brand identity for Australian Open

Read more

Cool stuff. https://blogs.adobe.com/digita...

Mary

Design thinking: Leading with experience

Read more

Conversation commerce is a double edged sword. Do it right and it can create customer delight. Do it wrong and it can lose customers.

Jinal Shah

Why conversational commerce is going to reshape customer engagement

Read more

I liked how Kmart decided on what to source- by placing a notional or real camera in the place of use, seeing what is touched the most in...

Jinal Shah

Kmart CEO details priorities to turn Target around

Read more

Latest Podcast

More podcasts

Sign in