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Ahead of their Q2 2014 earnings call, Google has issued an official press release for their Q2 earnings. Revenue is up 22% from last year, hitting a cool $15.96 billion.
Operating income came in at $4.26 billion (up from $3.47 billion the previous year), making for 27% of their revenue. When all is said and done, Google’s net income came in at $3.42 billion. For those curious about how Google did last quarter, they posted $15.4 revenue and $4.12 billion net (27% of revenue). That’s a nice 3% increase.
Google sites (Google owned properties like YouTube, Maps, etc.) accounted for $10.94 of their total revenue, a 23% increase from last year (partner sites accounted for $3.42 billion). Paid clicks saw a 25% increase from 2013, while cost-per-click dropped 6%.
Patrick Pichette, Google CFO Patrick Pichette said during the call:
“We are moving forward with great product momentum and are excited to continue providing amazing user experiences, with a view to the long term.”
Google also mentions they saw 300% increase in bringing traffic to businesses via smartphones and tablets and when it came to the Motorola team, they’re said to still hard at work, seeing “strong sales in emerging markets” with the wallet-friendly Motorola Moto E and Motorola Moto G.
The earnings call was kind of bitter sweet, as it was — after 10 years with the company — Google’s Chief Business Officer Nikesh Arora’s last call before parting ways for a new role at SoftBank. Arora will now be the Vice Chairman and CEO of SoftBank’s Internet and Media Division and we wish him the best of luck in his new endeavors. Omid Kordestani will be he filling his shoes moving forward.
The balance sheet doesn’t reflect how huge Android Wear, Android TV, and Android Auto will eventually be to this company. Mobile has changed the face of the web over the past 7 years… over the next 7 years the face of mobile is going to change. And Google is already way ahead of that curve.
Correct me if I’m wrong, but I didn’t think the devices made them any profits on their own. It’s the stuff you buy/view with them. I’m not sure if they will be as monumental as you think.
I think they might even hurt Google. Think this way, Google makes the majority of their money from ads, and we know that mobile ads have a lower cost per click because of the smaller screen, so if many people start using Android Wear and they use their phones less, even if just a bit less, that would be money lost for Google because they aren’t viewing any ads, and even if Google puts ads on the smartwatches too, considering they have an even smaller screen, the cost per click would fall much more.
As for Android Auto, I think Google could put just audio ads there, otherwhise they might distract the attention from driving, and in that case the ones that now use their phones while driving won’t use them anymore, but will use Android Auto, and I’m not sure but I think that audio-only ads would bring even less profit than mobile ads, because the consumer can’t view the product advertised.
If Google doesn’t suddenly change strategies and starts making a profit from hardware or from licensing Android Auto, which I think is improbable, I don’t see anything so positive about Android Wear and Android Auto, apart from data-mining their costumers wherever they are and sell that data to advertisers, together with creating a more integrated ecosystem, which doesn’t serve them that much considering that I don’t think there will be a lot of people who would pay for apps on a smartwatch when the majority doesn’t even pay for the ones on smartphones, and on Android Auto probably won’t be allowed any type of apps that can distract too much the attention of the driver.
I think that Android TV is the only one that can be truly positive for Google and contribute to its top and bottom line. Obviously this is just my opinion and I would like to hear other ideas, maybe Google will differentiate more its business and find other revenue and profit streams apart from ads on Android Wear and Android Auto :) but as of now I don’t see how it can do that
Google makes its money by taking a substantial cut from app sales i forget the exact number but i think its like 30%…android auto, wear, and tv all use apps many of which are paid apps. Even if a user only has to buy an app once, having android auto capabilities might push you to finally upgrade your free pandora/slacker/last.fm/whatever music app to a commercial free, paid version of the app. Music apps are also more expensive(monthly/yearly fees), then your standard $0.99and $5, so its a pretty good market to go after. This is just an example, im sure there will be specific apps targeted at each of the devices
Google does charge manufacturers a small amount for use of Google play but they really profit from people that buy into the whole Google ecosystem
Oh, sheet. I didn’t know that.
The balance sheet does show how much they are investing in projects like robots, balloons and Glass which doesn’t make money. They are still making more on iOS than on Android. They really need a business head that knows how to leverage their size.
Then their iOS revenue must have really changed from two years ago when they made more on Android.
All ms scroggle & sueing didnt help much guess who is laying off workers now ..pos win phone , tablet total flop lol