Google Q2 Earnings Call: Android Cost “Not Material”



Google took the opportunity today to discuss second quarter earnings and growth, showing a 24 percent growth in revenue during that period. In terms of cost-per-click growth, it rose from 2 percent, down from the 4 percent growth seen last year. When analysts expressed concern, Google admitted that though cost-per-click is more rapidly expanding in the mobile market than any other, that area may be dragging down company averages overall. Google CFO Patrick Pichette assured investors that Google is the right choice when it comes to mobile, citing the lack of material cost as big handset launches such as the Droid X are entirely undertaken by the equipment manufacturers.

Pointing to browsing as the most used feature in the mobile marking, search is up and looking good for Google. Senior vice president of product management Jonathan Rosenberg noted new advertising models such as click-to-call and the acquisition of AdMob equal dollar signs from mobile advertising that “gets in your face” thanks to the small size of mobile screens.

Also coming out of the conference call were the aging figures of 70,000 apps in the market (predicted to reach 100,000 by the end of this month alone) and 160,000 new Android phone activations a day. All in all Google didn’t report a bad quarter, though they have been catching some flack for coming in with lower growth than previous years.

[via GigaOM]

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  1. Its already a super mega company thats what happens growth slows down.

  2. “flack”? Flak, I think. Flugabwehrkanone.

  3. The Google ship is sinking! abandon all hope!

  4. hmm…gee, could growth be down because all markets aren’t on the uprise yet? zeesh.

  5. 160K was on june 23, I would hope it is more now with the launch of droid X and samsung phones ? isn’t it ?

  6. The Google ship is sinking! abandon all hope!

  7. it seems that a bunch of Droid X’s have been sold, though anyone could have predicted that. Verizon is now saying on their website that all Droid X orders will be shipped by July 23rd.h

  8. You know I really dislike the American Business Model “If you’re not growing you’re dying.” This mentality is exactly what has pushed us into the unstable economy we have right now. There is something to be said for stability. The idea that it isn’t good enough for a company to be profitable and that it must be more profitable than it was previously is so absurd. It’s like telling someone that makes $100K/yr that if they aren’t making $110K/yr after their next annual review that they should quit working because clearly their employer is going to fire them.

  9. i here you zero.. not only that as a whole they grew in revenue… but investors and others only see the one not so negative aspect of GOOG and as a result they are down 5% right now.. Investors can be so fickle sometimes.

  10. zero, I agree. The investors should be happy that google isnt drowning right now. I think that for the economy to be where it is right now and google to be doing as well as it is speaks volumes. Especially when we are talking about the mobile sector. There are alot of people that arent working right now and the ones that are have very little extra money to throw around. I myself included. I would buy every new hot device that comes out but realistically I cant afford it right now. 4-5yrs ago, I would have had the extra cash no problem.

  11. “showing a 24 percent growth in revenue during that period.”
    People are unhappy about TWENTY FOUR PERCENT? Give me a 24% increase on my paycheck for the last quarter and i’ll blow loads all over my keyboard. Some people are fucking impossible to please.

  12. 24% growth in revenue. What was the growth in profits…revenue growth means nothing if costs grow evem quicker.

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