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

Blog Posts

The rise of the conscious consumer

The concept of consumers boycotting brands and publishers isn’t a new one.

Jodie Sangster

CEO, ADMA

Cannes 2017: The Machines Are Here

It’s day 4 in Cannes and among the ever-growing divergent panels, presentations and workshops spanning from one end of the Croisette to the other, there has been a very real emergence of how artificial intelligence (AI) and machine learning needs to fit into the marketing ecosystem of today and tomorrow.

Aden Hepburn

Executive creative director and managing director, VML Australia

Is your content marketing missing the mark?

Does it ever seem like the content you create falls flat on its face or that the leads you’re generating aren’t worth following up?

Dan Ratner

managing director, uberbrand

Typo"claiming no other email service protects its users form spam, hacking and phishing as successfully as Gmail"I'm sure Google can help...

OlliesBlog

Google to stop scanning personal Gmail accounts for ad targeting

Read more

It is interesting. Rebrand is very good. Perhaps they should change the logo to something more modern. For example as it is - https://www...

David Hill

Grace Group undergoes first rebrand in 30 years to unify and contemporise

Read more

Hey Guys, just one small typo that changes a part of the story :“That was a really big step forward for our company because we didn’t hav...

Damian Young

Chobani tastes success with data analytics platform

Read more

This is amazing! Congratulations to Cochlear for continuing to lead innovation in every way!

Chris

How this marketing ops leader is lifting the automation ante at Cochlear

Read more

Interesting case! It seems like universities can also benefit from marketing automation. I've started using getresponse some time ago and...

Aaren

How marketing automation is helping drive CX change at Adelaide University

Read more

Latest Podcast

More podcasts

Sign in