Google (NASDAQ:GOOG), recently released its second quarter call earning which was quite strong. Consolidated revenue grew a healthy 22% year-over-year to $16 billion and was up 3% quarter-over-quarter. The gross consolidated revenue growth would in fact have been 21% year-over-year, without currency fluctuations, but still the reports are quite healthy.
Site revenue was up 23% year-over-year to $10.9 billion and was up 4% quarter-over-quarter determined by quality in the center pursuit publicizing business. Network revenue grew by 7% year-over-year to $3.4 billion and increased by 1% quarter-over-quarter mainly due to the development in mobile advertisement and Ad Exchange programs.
Moreover, development in clickable promotion revenue climbed 18% versus 2013's levels, inferring more noteworthy commitment from showcase promoting, for example, Youtube's Trueview ads, and the "other" portion, including Google cloud-related items.
On the global forefront the aggregate paid click was quite strong the quarter, up 25% year-over-year and 2% quarter-over-quarter. Aggregate CPC were down 6% year-over-year, but flat quarter-over-quarter.
Finally, Google other revenue grew 53% year-over-year to $1.6 billion and was up 3% quarter-over-quarter. Digital sales of apps and content in our Play Store drove the year-over-year growth.
Revenue and productivity for the quarter were by and large in accordance the consensus estimates.
The company is also stays focused on its investments plans with long term initiative. Substantial financing in server farms and more early items and administrations (for instance, fittings, Google Compute Engine, and Google Fiber) will leverage revenue growth in future.
Making magical products that people love to use every day is what drives the ambition of the company, and also fuels the business. The company also has plans to expand the android platform for various growth segments like cars, watches, Smart TVs. The expanded product portfolio of the Company will help the them to attain higher traffic with the concept of Google from anywhere. Increasing traffic means, the advertisement programs of Google is likely to attain new heights in future.
Upgrades & New releases
The Company covers the interest of its agencies and publishers by constantly upgrading the ad technologies. This further stimulates growth of the company. It recently released a premium programmatic video marketplace called “Google Partner Select” to help publishers monetize their video content and to help agencies reach top quality video content across the Web.
The company also released Google Drive for work, a premium service of businesses that includes unlimited storage. AS the data growth continues in the corporate and business houses this product is witnessing tremendous acceptance .This is exemplified by the fact that the forst sale was achieved in minutes after it was released for subscription.
This cloud platform business is also anticipated to growth with the new features that has been integrated. The new features enable the developers to increase the productivity. It provides git support, but easier access to logs across all instances, new tools for tracing bugs, and an online code editor for making quick changes to applications right from the Cloud Console.
The Google apps market has been growing exponentially as it integrates new features for developers and end users. Goolge recently signed deals with CBS TV and Viacom to bring their TV content to Google Play. This quarter the Company added even more like Rockwell Collins. They signed up 20, 00 employees to use Google apps. At an enterprise lever more than 60% of the fortune 500 companies use google paid products and apps
Building Community Developers
With over a 1 billion active android users of Google Play, means that more developers are building successful global businesses in the existing platform. Since last June, the company paid out more than $5 billion to developers through Play. This clearly indicates an upwards trend of its business with the developer community.
In the current environment, I believe that Google can be a core holding for many investors based on the fact of its wide economic moat.