Google Q3: earnings, Revenues miss, Paid Clicks Up, CPCs Down 2 Pct.

$16.5B in consolidated revenues a 20 % increase over 2013.

 

 

Google introduced Q3 2014 cash this afternoon. the corporate mentioned $sixteen.fifty two billion in “consolidated revenues.” This represented a 20 percent elevate over Q3 2013. alternatively cash per share and revenues have been under Wall boulevard expectations.

The inventory is off in after-hours trading.

Google Q3 Earnings 2014

Google websites generated $11.25 billion, which was once 68 p.c of total earnings (20 p.c increase yr over year ). community/companion site revenues have been $3.43 billion, which used to be a 9 percent elevate year over 12 months. different revenues (Google Play essentially) had been $1.eighty four billion, a 50 % raise vs remaining yr.

revenue from outside america used to be $9.fifty five billion (58 % of whole income). UK earnings in particular was $1.sixty three billion.

visitors acquisition costs were $three.35 billion, up from $2.97 billion in 2013. CPCs were down 2 p.c year over yr however consistent from Q2 2014. CPCs on Google and and its network each declined:

price-per-click on for Google websites decreased approximately 4% over the 0.33 quarter of 2013 and diminished approximately 1% over the 2d quarter of 2014. network value-per-click on lowered approximately four% over the 1/3 quarter of 2013 and increased approximately 2% over the 2nd quarter of 2014.

Google CPCs Q3 2014

Paid clicks increased 17 percent vs. 2013 and grew 2 percent in comparison with the 2d quarter:

combination paid clicks, which embody clicks associated to ads served on Google web sites and the sites of our community contributors, increased approximately 17% over the third quarter of 2013 and increased roughly 2% over the 2d quarter of 2014. sites paid clicks, which embrace clicks related to advertisements we serve on Google owned and operated houses throughout different geographies and type factors including search, YouTube engagement commercials like TrueView, and other owned and operated houses like Maps and Finance, increased approximately 24% over the 1/3 quarter of 2013 and increased approximately 4% over the 2d quarter of 2014. community paid clicks, which embrace clicks associated to advertisements served on non-Google houses taking part in our AdSense for Search, AdSense for content, and AdMob companies, increased roughly 2% over the 1/3 quarter of 2013 and diminished roughly 4% over the 2nd quarter of 2014.

Google Q3 Paid Clicks

Google said that it had roughly $sixty two billion in cash and cash equivalents, up from $59 billion at the end of remaining 12 months. the company employed 55,030 full-time employees (together with Motorola Mobility) as of September 30.

The income name is subsequent and we’ll be listening for extra colour particularly about the CPC decline.

Notes and feedback from the salary call: 

On the decision were CFO Patrick Pichette and Chief business Officer Omid Kordestani. CEO Larry web page, on account of considerations along with his voice, hasn’t been on the previous few conference calls.

Pichette:

  • “mixture CPCs have been down only 2 %.” Emphasis on the word “simplest”
  • US income up 15 p.c.
  • Non-US income (now not incl. UK) was up 26 p.c
  • Omid Kordestani returns to full time work and promoted to “Chief industry Officer”

Kordestani: 

  • Launched move-instrument size for cell show under stronger Campaigns. This has published 15 % higher conversion rates than in the past known.
  • The core of our industry, performance promoting, continues to ship great results.
  • In our brand trade . . . We’ve bought out our Google YouTube most well-liked advert inventory
  • New brand ad codecs for cellular gadgets launched
  • DoubleClick bid supervisor is the “go to” instrument to assist marketers navigate the programmatic universe
  • outstanding momentum in our new non-advertisements industry. Google Play’s growth “continues to impress.” Play motion pictures to be had in ninety three international locations.
  • AndroidOne might be increasing to India, Indonesia in the coming months.
  • 250 million lively Google pressure users

monetary analyst Q&A:

u.s.a.asks about Google buying express, its rebranding (Google specific) and any momentum.

Kordestani: “Our purpose is to take it a step at a time.” Pichette (defensively): it’s very clear that folks need this product. Now we’re in phase 2 in line with our business plan. You will have to see the bulletins this week as a good signal.

Merrill Lynch asks about paid clicks and CPCs:

Pichette: We’re pleased with monetization, which is very strong. There’s nothing noteworthy to mention this quarter, “we’re more than pleased with the developments.”

credit score Suisse asks about where Google is investing in its industry:

Pichette: We’re investing in our core trade. but investing in lots of different areas “with enthusiasm.”

RBC Capital Markets asks about cell search health/usage:

Pichette: cellular remains to be an immense part of our growth. CPCs can fluctuate from quarter to quarter. We’re very pleased with the momentum.

query about UK market and its health and cellular payments:

  • Pichette: UK slowing increase as a result a couple of elements. however we’re pleased with it.
  • Kordestani: We’re creating a completely functional payment system. Cites a spread of shopper options. however focal point is on merchant adoption.

query about television budgets and shift to on-line:

Kordestani: we are seeing a shift to digital with brand advertising. Re fb . . . what they’re doing is bringing extra consideration and innovation to the distance so we welcome that. There four hundred hours of content uploaded each minute.

query about deep linking and cell apps:

Kordestani: AdMob reaches 900 million unique units each month. Our personal apps are very successful. We’re helping to power a whole lot of tens of millions of app downloads for developers. We’re concerned about this space to help developers.

Pichette: we see important developer adoption of deep linking

question about mobile advert pricing:

Pichette: on a QoQ foundation don’t panic about CPC fluctuations

question about estimated whole conversions and movement faraway from cookies:

Kordestani: it’s going to take awhile to have a real finish-to-end resolution for entrepreneurs and companions. References audience targeting on facebook. No response regarding cookie alternative with identity different

observe up query about Google categorical and digital wallets (does Google need to personal the Android fee answer?)

Pichette: With Google purchasing categorical there is an issue of scale. Trials off into generic discussion of efficiency

Kordestani re payments: we wish to get the person experience and the ecosystem proper

question about how the carriers are reacting to Google Play:

Pichette: we now have just right relationships with carriers

question about Google video promoting:

Kordestani: now we have upfront (YouTube) commitments for Google most popular from 5 top companies and major brands. We’ll proceed to figure out package this stock higher and working with advertisers and businesses to get “this time of selling right.”

I didn’t seize every query or response however obtained most of them. largely Pichette and Kordestani responded in unspecific generalities that were fairly bland. issues are going smartly for Google however obviously not in addition to portrayed (they neglected on revenue and revs). Even whereas sustaining their upbeat tone and outlook they could have extra directly answered plenty of the questions and equipped extra element than they did.

 

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