Google’s Q2 Earnings Report 2019 – The Buyer’s Journey 79

As marketers we use a lot of platforms for our marketing efforts. This is the first in a series of episodes focusing on the Q2 earnings reports of each of a few of those platforms. Today, we’re looking at Google’s Q2 earnings report and we’ve got a breakdown of everything you need to know.

Q2 Earnings Report Quick Numbers

Here are a couple quick-hit numbers on one of the largest social media platforms via Laura Feiner on CNBC:

  • Earnings per share: $14.21 per share, ex-items, vs. $11.30 per share expected, per Refinitiv survey of analysts
  • Revenue: $38.94 billion, vs. $38.15 billion expected, per Refinitiv
  • Traffic acquisition costs: $7.24 billion, vs. $7.27 billion, according to StreetAccount. (TAC is the cost Google pays to other companies to make its service the default search engine on the device.)
  • Paid clicks on Google properties from Q2 2018 to Q2 2019: +28%
  • Cost-per-click on Google properties from Q2 2018 to Q2 2019: -11%

An In-Depth Look

Google’s revenue did much better than both Q2 last year and last quarter. Google’s reported advertising revenue was $32.6 billion for Q2. Last year amounted to $28.09 billion during the same period. Google’s other revenue streams came in at $6.18 billion compared to $4.43 billion during Q2 2018. These streams include hardware such as Pixel phones and cloud services. Google clarified that cloud revenue made up the majority of this segment and was the third largest driver of overall Alphabet revenue growth. In addition, Feiner reports that Google CEO Sundar Pichai said the cloud business reached an annual revenue run rate of over $8 billion. In February 2018, Google said that the cloud business was bringing in $1 billion per quarter.

There was a 28% increase in paid clicks on Google properties in Q2 of 2019 compared to the same quarter in 2018. In addition, there was an 11% decrease in cost-per-click on Google properties over that same period.

Last quarter, Google reported decelerated growth. This slowing growth, they said, was due to a myriad of YouTube controversies. However, for Q2 2019, Porat said YouTube’s revenue was strong. “YouTube was again the second largest contributor of revenue growth, and [we’re] really pleased with the ongoing momentum that we’re seeing here,” Porat said.

Check out our next episode where we’ll discuss Amazon’s Q2 earnings report.

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