Seeking Alpha

Google's sales chief leaving for SoftBank; ad prices stabilizing

  • In tandem with its Q2 report, Google (NASDAQ:GOOG) announces long-time sales chief Nikesh Arora (well-respected in the industry) is leaving to become SoftBank's (OTCPK:SFTBF) vice chairman and Internet/Media chief.
  • Google's paid clicks (boosted by mobile and product listing ads) rose 2% Q/Q and 25% Y/Y in Q2, after growing 25% Y/Y in Q1. Paid clicks on Google sites rose 6% Q/Q and 33% Y/Y, while those on ad networks were down 5% Q/Q and up 9% Y/Y.
  • Cost per click (hurt by low smartphone ad prices) was flat Q/Q and down 6% Y/Y. The Y/Y drop was narrower than Q1's 9%. CPC was down 2% Q/Q and 7% Y/Y on Google sites, and up 3% Q/Q and down 13% Y/Y on ad networks.
  • Google sites revenue (69% of total) +23% Y/Y vs. +21% in Q1. Network revenue (21% of total) +7% Y/Y vs. +4%.  Other revenue (10% of total, includes hardware and Google Play) +53% vs. +48%.
  • Traffic acquisition costs were 23% of revenue, even with Q1 and down from 25% a year ago. Opex was 35% of revenue, even with Q1 and up from 34% a year ago.
  • Free cash flow was $2.98B, below net income of $4.18B. Capex was a hefty $2.65B.
  • Google ended Q2 with $61.2B in cash, up $1.8B Q/Q.
  • GOOG +2% AH. Q2 results, PR.
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Comments (3)
  • Yesterdays_news
    , contributor
    Comments (1581) | Send Message
     
    First Matt Cutts long personal leave and now Arora going?
    17 Jul 2014, 04:55 PM Reply Like
  • lords
    , contributor
    Comments (126) | Send Message
     
    Just a spin to make it look good. The even increase is due to several aquisitions, the comparison should be Q over Qtr. They show only the stats that look positive. Good at 400billion mkt cap and PE of 30 plus is not a good investment at these prices. Same issue online mkt is saturated and more completion from other social media cos like face book etc. also they have big issue in euro zone and china. Cannot see where the grow is going come from. Unless it is 20-30% cheaper do not see much value or growth in the company
    17 Jul 2014, 09:36 PM Reply Like
  • MrMatt
    , contributor
    Comments (1387) | Send Message
     
    Pricey, but not too bad.
    I'll hold, however I did trim my position last fall.
    18 Jul 2014, 08:26 AM Reply Like
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