It’s safe to say that many today were eagerly anticipating the announcement of Google’s Q2 2012 earnings, and now we can all relax! The live conference call took place today July 19th at 4:30 PM and featured Google’s Patrick Pichette, Nikesh Arora and Susan Wojcicki, who participated in announcing the big news only minutes ago.
The results ultimately stand as a shining beacon of hope for how online advertising remains solid in a persistently tough economy.
Google reported its second-quarter net profit to be $2.79 billion – or $8.42 per share – an 11 percent increase on a 35 percent jump in sales to $12.21 billion. Additionally, non-GAAP profit per share – an important one for analysts – totaled to $10.12.
Keep in mind that these revenues include six weeks of its recent Motorola acquisition, which Patrick Pichette, senior VP and CFO, made clear in the live conference call (going on now). The company’s revenue in itself was $10.96 billion, up a satisfactory 21 percent. A tad bit contradictory to analysts’ forecasts of revenue after payments to website partners, Google raked in a hefty $8.36 billion, falling just short of the predicted $8.41 billion.
Core metrics continued to perform very well, and global aggregate revenue grew 42 percent year-over-year.
Additionally, Google’s partnerships permeate all industries across the world, according to Nikesh Arora, senior VP and chief business officer. “We have the in the best relationships with agencies around the world that we’ve ever had before, and we’re moving those relationships to real partnerships.” Arora added. Needless to say, within the geographical sector, its US, UK, and worldly revenue continued at a fast pace.
The non-gap operating profit stood at $4 billion, up 32.3 percent, which Pichette explains “gives us the confidence to fully fund mobile, android, blue-tooth, and chrome.”
By the end of 2-2, the company had 54,600 full-time employees. Furthermore, other income and expenses totaled to about $254 million, with operating cash flow very strong at $4.3 billion. Additionally, the company saw $3.5 billion in free cash flow.
Arora then took the conference call reigns in explaining that the business had a very strong quarter with over $11 billion in revenue. He then broke things down into two main categories: big bets which are coming together in integrated platforms and looking into how investments are helping business accelerate.
The main point Arora made during the first section concerned its new collaboration with major global news platform YouTube. “YouTube now unites the world,” Arora said, continuing to explain that this is why the company has released a new app for YouTube for users to follow video content on mobile devices.
Moving forward, Arora made a point to say that the overall move to digital media has obviously driven search, but he stressed that it was also the amount of effort put in by their engineering team which made it continuously get better. Their hard work improves the relevance of their ads to make them more useful to consumers, he says. Arora explained that the company’s ultimate goal is to have advertisements that helped every single customer with his or her exact objectives every time.
Edited by
Rachel Ramsey
