By Shaun Murison*
Revenues for Q2 were $15.96bn, a 22% gain from the previous year’s comparative quarter and above consensus estimates of $15.6bn. Google site revenue and partner site revenue accounted for 90% of sales while 58% of total revenue now arrives from outside of the U.S. (2Q2013 comparative 55%).
Paid clicks increased 2% from 1Q2014 and 25% from 2Q2013. The paid clicks witnessed a 33% rise from Google’s own sites will a modest 9% from other sites. The average cost-per-click was flat on 1Q2014 and down 6% on 2Q2013. The figure worsens slightly to 7% when accounting for currency fluctuations. Advertising revenue remains the short term hurdle but also the future potential for earnings growth.
Earnings per share (EPS) were reported at $6.08, falling short of consensus estimates ($6.25).
The company has furthered its cash and cash equivalent reserves to $61.2bn from $58.72bn.
Google Inc results were met with favour by investors as the share price gained more than 1% following the news. A Reuters ratings poll of 45 surveyed analysts remains overwhelmingly in favour of a buy with no sell recommendations.
* Shaun Murison, an analyst at IG, has worked in financial markets for over eight years, and until recently ran IG’s Durban branch in South Africa, before moving to Johannesburg.Â
“@alechogg: Google revenues up 22%, beats expectations http://t.co/HyU5Mt6hgV” The new vampire squid on the face of humanity?
— Johan Roets (@JohanRoets) July 18, 2014
