Google beats analyst revenue projections in second quarter earnings

Google reported a strong second quarter Thursday, highlighted by improved ad revenues on and off Google sites.

Revenues for the quarter ended June 30, 2014 were $15.96 billion, representing a 22 percent increase over the same quarter last year, in which Google earned $13.11 billion.

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Analysts polled by Thompson Reuters had expected the search giant to report revenues of $15.62 billion.

“We are moving forward with great product momentum and are excited to continue providing amazing user experiences, with a view to the long term,” said Google CFO Patrick Pichette in a statement.

Google’s earnings, however, came in at $6.08 per share. Analysts had expected earnings (excluding items) of $6.24 per share.

Paid click ad revenue, on Google’s sites and ad network member sites, increased by 25 percent over the second quarter of 2013, and increased approximately 2 percent  over the first quarter of 2014, Google said.

Revenue from Google owned web properties including search, YouTube ads, and Maps and Finance, increased by roughly a third over the second quarter of 2013, and increased approximately 6 percent over the first quarter of 2014.

Paid clicks from ads served through Google’s AdSense for Search, AdSense for Content, and AdMob businesses, increased approximately 9 percent over the second quarter of 2013, but decreased five percent over the first quarter of 2014.

Another, perhaps better, barometer of the health of Google’s overall business is its headcount. Google hired 2400 new employees during the second quarter — mainly engineers and project managers — compared with last year’s second quarter, when it hired only 1400 new employees.

During the earnings call Thursday afternoon Google’s VP and chief business officer Nikesh Arora said the Google Play store continues to increase its contributions to profits.

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Chromebooks, too, are seeing some pick-up in sales: “Over 1 million Chromebooks were sold into schools — clearly a record quarter,” said.

Asked for details on YouTube’s revenue picture, Google’s Pichette declined.

On a side note, Arora announced he’s leaving Google.

Answering an analyst’s question about the state of Google’s consumer fiber services, Pachette said: “An important part of the strategy is to build demand. We are working with 34 cities, and we are working with a checklist to prepare these cities.” Next month we’ll be going over all of the details like right of way and permitting, and then we’ll decide which cities are ready to go forward, he said.

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