Google is trying to attract more users to its ads on mobile with several new features.
The Internet search giant reported $6.99 earnings per share, while analysts were expecting about $6.70. Total advertising revenues for Q2 were $16B (11% from past year, same quarter/ 3% from Q1). Those figures represented a 12 percent revenue growth year-over-year and a 3.8 percent increase in profits between Google’s first-quarter earnings in 2014 and this year. Lured from Morgan Stanley, Porat brings extensive experience with Wall Street. It will add almost $40 billion to its market value. While Google will continue to explore promising opportunities, Porat pledged to do so “with great care regarding resource allocation”.
YouTube got a big shout-out during Google’s Q2 2015 earnings call Thursday, with Google’s new CFO Ruth Porat stating that the company has seen “significant growth in YouTube revenues” in the last quarter.
Near 1445 GMT (10-45pm Singapore time), Google shares stood at US$658.59, up 13.6 per cent, lifting its market capitalisation well above US$400 billion (S$540 billion), second only to Apple, which is valued at US$745 billion. Google’s soaring stock price is an indication that the company has renewed investor faith in mobile.
The company’s operating expenses, meanwhile, grew by 13 per cent, to $US6.32 billion. The number of paid clicks increased 18 per cent.
Excluding currency fluctuations, revenue rose 18% from a year earlier, compared to 17% growth in the first quarter. In comparison to the desktop, ads in mobile search results are smaller, and can yield fewer interactions from users, driving down their price. The company said that if the foreign exchange rates remained steady the revenue would be $1.1 billion higher. The stock was up a bit more than 7 percent after the end of regular trading and consistently rose amid the call as she discussed holding costs under control.
Google’s CPCs fell 11 percent in the quarter, pressured by YouTube TrueView ads – lower priced ads for which advertisers pay only when viewers don’t skip an ad.
The other reason is Google’s video platform YouTube, where businesses are even less likely to spend money on ads because they say it doesn’t generate the kind of sales leads they want.