Friday, July 19, 2013

Google POSTS over $14 billion in revenue during Q2 2013

For the last several months Google's stock price has been surging, getting increasingly close to the $1,000 mark. And when monstrous revenues like this keep rolling in, it's easy to see why. In Q2 of 2013, the internet giant pulled in $14.11 billion in revenue, an increase of 19 percent year-over-year. Of that massive haul, all most all of it (93 percent) was generated directly by Google properties, most notably massive advertising networks -- $12.1 billion of its gross was thanks to advertising.

Motorola's efforts equate to just less than $1 billion in revenues, but the $998 million it pulled in is not an inconsequential improvement over Q2 2012's $843 million. Even with that modest increase, however, Moto still posted an operating loss of $342 million. That's notably worse than the $199 million lost during the same quarter last year. While this wasn't a record setting quarter for Google, it's certainly not far off from its Q4 2012 mark of $14.46 billion, and marks a small increase sequentially.

Net income also remained strong, with the Mountain View team pocketing $3.23 billion. Again, not a record high, but not far off from the $3.55 billion in Q1, and a pretty impressive jump year-over-year from $2.79 billion. While a significant chunk of Google's cash is generated here in the good ol' US of A, the international markets are still treating the company quite well. In fact, a full 55 percent of revenues ($7.2 billion) were earned overseas. While cost-per-click continued to decline for the company, by 6 percent from last year, the number of paid clicks was up more than enough to compensate -- an impressive 23 percent. And, should Google's fortunes suddenly turn, it has a war chest of $54.4 billion stashed away for a rainy day.

We're listening in to the earnings call at 4:30 PM ET today and you'll find updates from that after the break.

4:35pm: Larry Page says that the growth of device categories and operating system choices has given Google the chance to grow as quickly as it has.

4:36pm: "In hindsight, Android and Chrome were no-brainers." But as Page notes, those both seemed like massive risks at the time.

4:37pm: 900 million Android devices have been activated in total, with 1.5 million added every day and over 50 billion apps have been downloaded from the Play store.

4:39pm: Larry is recapping the long laundry list of apps and services that Google has already updated this year, including Google+, its accompanying photo service, Maps and the launch of Hangouts.

4:41pm: Larry is very excited about whatever Motorola is launching soon, but he was not willing to tip his hand any more than that.

4:42pm: CFO Patrick Pichette is on the call now, running through the numbers.

4:51pm: Now Nikesh Arora is on the line talking about the growth in hardware sales through the Play store. Most notably he says that Chromebook sales are up three-fold from last year.

4:58pm: We're now heading into the Q&A.

5:00pm: Larry sees plenty of room for growth beyond smartphones and tablets. Specifically, he highlighted Google Glass and talked about investing in technology to makes sure we're prepared to "live the future." Sadly, he wouldn't get much more detailed than that. He also noticeably did not mention TVs, a market that Google still hasn't managed to make a significant dent in.

5:05pm: In response to a question about making Google Fiber a viable business, Nickesh said only that they were pleased with the response so far and were watching the metrics. He said that the financial side wasn't "rocket science," instead it was about figuring out how to market and improve upon the service.

5:11pm: When asked about balloon-deployed internet and self-driving cars, Larry said only that the automated vehicles were still very early in development and that it's tough to know when technologies like these will be commercially viable.

5:27pm: Larry was asked about balancing an aggressive marketing campaign for the upcoming Moto X with keeping the company's other Android partners. Larry reiterated that Motorola is operated independantly and doesn't see much reason for concern about how it might effect partnerships with other companies. In regards to the Moto X specifically, he did say that "obviously, you'll get to check it out soon." Wheeeeee!

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