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Google has reported consolidated revenues of $17.3 billion for the quarter ended March 31, 2015, registering a 12% increase from$15.4 billion in the same quarter last year. Note that these revenues include traffic acquisition cost of $3.34 billion for the quarter.

Highlights

– Google owned sites vs network: The revenues from Google-owned sites was at $11.9 billion for the quarter, up 13.6% year-on-year (YoY) from $10.47 billion in Q1 2014, while the network revenues from partner sites (i.e. through Adsense programs) were at $3.57 billion, up 5% YoY from $3.40 billion in Q1 2014.

The total advertising revenues was at $15.5 billion for the quarter. It continues to dominate Google’s overall revenues, accounting for 89.6% of the company’s revenues for the quarter.

What’s worth noting here though is that Google hasn’t provided any indication on how its mobile ad business is performing, unlike its competitor Facebook which has reported that mobile advertising accounted for 73% of its overall advertising revenues in Q1 2015.

– Other Revenues: Other revenues for the company was at $1.75 billion for the quarter, registering a 12.9% increase from $1.55 billion in Q1 2014. Other revenues comprises revenues generated from content sales and hardware sales on Google Play.

– International Revenues is 57% of total revenues: Google revenues from outside of the United States was at $9.83 billion, representing 57% of its total revenues for the quarter, same as that in the same quarter last year. It’s UK revenues were at $1.72 billion for the quarter. While Google doesn’t disclose India revenues, it had reported revenues of Rs 3,050.69 crore (around $507.35 million at applicable exchange rates) for the 12 month period ended March 31, 2014.

– Paid Clicks increase by 13% YoY: Aggregate paid clicks, which includes clicks related to ads served on Google sites and AdSense partner sites, increased by around 13% YoY, but declined marginally by 1% quarter-on-quarter (QoQ). In comparison, the paid clicks had grown by 14% YoY in the previous quarter.

Google Paid Clicks

– Google owned sites vs network paid clicks: Paid clicks on Google owned sites grew by around 25% YoY, however it declined by 3% QoQ. This includes Google Search, YouTube engagement ads like TrueView and other properties like Maps and Finance.

On the other hand, Network paid clicks decreased by 12% YoY and grew by 4% QoQ. Network paid clicks includes clicks on ads served on non-Google properties through its AdSense for Search, AdSense for Content, and AdMob businesses.

– Cost-Per-Click dips by 7%: Aggregate cost-per-click, which includes clicks related to ads served on Google sites and AdSense partner sites, however continues to slide. It dipped by 7% YoY and by 5% QoQ.

The cost-per-click for Google owned sites dipped by 13% YoY and 3% QoQ, while the network cost-per-click increased marginally by 2% YoY, but dipped by 11% QoQ.

Google Cost Per Click

– Traffic Acquisition Costs: The traffic acquisition cost (TAC) which is essentially a part of Google’s revenues that it shares with its partners, was at $3.34 billion for the quarter, up from $3.23 billion in the same quarter last year. Of this, $2.43 billion was paid by Google to its network members and the remaining $913 million was paid to certain distribution partners & others who directed traffic to Google’s website.

Google Traffic Acquisition Cost

– Other Cost of Revenues: Other cost of revenues increased to $3.01 billion for this quarter, as compared to $2.72 billion in the same quarter last year. This is comprised primarily of data center operational expenses, content acquisition costs,  revenue share payments to mobile carriers and original equipment manufacturers, and hardware inventory costs.

– Total Cash: As of March 31, 2015, Google has $65.43 billion money in form of cash, cash equivalents, and marketable securities, compared to $64.40 billion as of December 31, 2014.

– Headcount: Globally, Google has 55,419 full-time employees as of March 31, 2015, as compared to 53,600 full-time employees at the end of the previous quarter.

Online store: The search giant launched a new online store specifically for selling hardware “made with Google” called Google Store. Consumers will be able to buy Android phones & tablets, Android Wear devices, Chromebooks, Nest devices, media streaming devices (Chromecast), and other related accessories on the Google Store. The Play Store will now be dedicated to digital content, and the Devices section on the Play Store now redirects to the Google Store.

Appointment: Google India MD Rajan Anandan was also appointed as the VP of sales and operations for Southeast Asia. He will report directly to Karim Temsamani, president APAC. Anandan, who has been with Google since Fenruary 2011, has also invested in various India focused startups like GiftCardsIndia, Socialblood.org, DocSuggest,InstaMojo and Aurality among others.

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