The company’s advertising revenue rose 11 per cent to $16.02 billion.
During the call she said that the cost-per-click, or CPC, of mobile ads has risen and that desktop CPC has held steady.
But Porat, a former Morgan Stanley chief financial officer who in May replaced Patrick Pichette as CFO, fended off analysts’ attempts to learn more about the size and profitability of YouTube. After counting for expenses, Google’s net income came to $3.93 billion on a GAAP basis, up from $3.35 billion a year ago, or $4.83 billion on a non-GAAP basis, up from 4.1 billion in June of last year.
GOOG has been investing billions of dollars on acquisitions, data centers, real estate, and research and development to assist its prevailing businesses and look for new growth opportunities in markets including transportation, energy and health care segments.
Google has posted an impressive set of results for its second quarter, with revenue up 11 percent and profit up 17 percent, aided by mobile search and YouTube growth.
Google shares rose as high as $US683.65 in extended trading after the report.
Google remains the most valuable publicly traded USA company after Apple. On Thursday, shares rose 3.05% to $601.78.
The company’s new financial chief, Ruth Porat, hinted on Thursday that Google, which has never repurchased stock or paid a dividend, might distribute some of its cash to shareholders.
Analysts projected earnings of $6.70 a share, which Google beat by 29 cents.
Even though the average price of online ads fell in the quarter, Google was able to grow revenue on volume, which was up 18% on the second quarter of 2014.
Porat inherited an increasingly complex company that has been slow to break out more financial details about key services, such as YouTube and mobile advertising. The average price for most of Google’s digital advertising has been steadily declining since late 2011, partly because marketers haven’t yet been willing to pay as much money for commercial messages shown on the smaller screens of smartphones instead of personal computers.
Like Facebook, Pinterest and other Internet and social networking sites, Google expects to boost its earnings in the future by attaching “buy buttons” to mobile ads to make shopping easier for smartphone users.