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Google Q2 2013: $14.11B Revenue, Paid Clicks Up 23%, CPC Down 6%


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Google has posted consolidated revenues of $14.11 billion for the quarter ending June 30, 2013, registering a 19% growth from $12.21 billion revenues reported in the corresponding quarter last year (Q2 2012). Note that this revenue is without deducting the traffic acquisition costs of $3.01 billion.

Highlights

– Google claims to have crossed 50 billion downloads on Google Play, up from 48 billion in May 2013. The company claimed to have clocked 900M Android device activations as of May 2013.

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– Google launched a new version of Google Maps on desktop and on mobile apps across iOS and Android.

– Google launched a redesigned version of Google+ and claims to have 190 million monthly active users in the Google+ stream and 390 million upgraded accounts which are active across Google properties and are using Google+ features like +1 ing apps in Google Play and making video calls in Gmail among others.

– Google launched a new cross platform messaging system called Hangouts, which will replace Google Talk and will be available on the Chrome Web Store and through native mobile apps on Android and iOS. It will also be a part of Gmail and Google+.

– Google announced new variants of Samsung Galaxy S4 and HTC One with stock Android 4.2.2 and Nexus User experience.

– Google Chrome claims to have 750 million users as of May 2013.

– Google acquired navigation app Waze for an undisclosed amount. The company informed that Waze will continue to work from Israel and will operate separately for now.

Financials

Google Revenues (Advertising and others): Google reported revenues of $13.11 billion, up 20% from $10.96 billion revenues posted in the same quarter last year. These revenues accounted for 93% of Google’s consolidated revenues for the quarter.

Motorola Mobile Revenues (Hardware and others): Motorola Mobile reported revenues of $998 million, up 18.4% from $843 million in Q2 2013. These revenues accounted for 7% of Google’s consolidated revenues for the quarter. Note that this revenue is from Motorola’s mobile segment only. Motorola Mobility had inked an agreement with Arris Group in December 2012, to sell its home business for $2.35 billion in cash and stock and the acquisition was completed in April 2013.

Google owned sites vs network: Google-owned sites generated revenues of $8.87 billion for the quarter, a 18% increase YoY from $7.54 billion in Q2 2012, while the network revenues from partner sites (through Adsense programs) were $3.19 billion, up 7% YoY from $2.98 billion in Q2 2012. Total advertising revenues were at $12.06 billion for the quarter and it accounted for around 92% of Google revenues and around 85.4% of Google’s consolidated revenues during the quarter.

Other Revenues: Other revenues for the company stood at $1.05 billion for the quarter, registering a 138% growth from $439 million in Q2 2012. Other revenues includes revenues generated from content sales and hardware sales on Google Play.

International Revenues: Revenues from outside of the United States stood at $7.2 billion, representing 55% of the total revenues for the quarter, as compared to 55% in the previous quarter (Q1 2013) and 54% in the same quarter last year (Q2 2012).

Paid Clicks: Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of AdSense partners, increased approximately 23% YoY, and 4% quarter on quarter (QoQ).

- Cost-Per-Click: Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of AdSense partners, decreased approximately 6% YoY and around 2% QoQ.

Traffic Acquisition Costs: As stated earlier, the Traffic acquisition cost (TAC), the part of Google’s revenues which is shared with its partners, was at $3.01 billion for the quarter, up from $2.60 billion reported in the same quarter last year. This includes $2.31 billion paid to its network members and $706 million paid to certain distribution partners and others who directed traffic to their website.

Total Cash: As of March 31, 2013, Google has $54.4 billion money in form of cash, cash equivalents, and marketable securities.

Headcount: On a worldwide basis, Google employed 44,777 full-time employees as of June 30, 2013. This includes 40,178 full-time employees in Google business and 4,599 full-time employees in Motorola Mobile business.

Other Google Developments During The Quarter

– Airtel had partnered with Google to launch Free Zone service that will offer Airtel subscribers with free access to Google services such as Google Search.

– Google Search had started providing flight status for Indian flights.

– Google had launched Crisis Map and Person Finder to offer missing person and emergency place information in Uttarakhand floods.

– Google had partnered with Spice Global to set up Android Nation retail stores in various Indian cities, starting with New Delhi later this year.

– Google had extended product listing ads to India.

– Google India reduced prices of Google Apps for Business by 45% to Rs 150 per user per month or Rs 1,500 per user per year. Previously, it was priced at Rs 270 per user per month or Rs 2,700 per user per year.

– Google Translate added support for Marathi Language.

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