Seeking Alpha

Google Inc. (GOOG)

  • Jul. 17, 2014, 4:27 PM
    • 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.
  • Jul. 17, 2014, 4:12 PM
    • Google (NASDAQ:GOOG): Q2 EPS of $6.08 misses by $0.15.
    • Revenue of $15.96B (+21.7% Y/Y) beats by $350M.
    • Shares +1.1%.
    • Press Release
  • Jul. 16, 2014, 5:35 PM
  • Apr. 16, 2014, 6:21 PM
    • Going forward, Google (GOOG) will break out its paid click and cost per click data in more detail, CFO Patrick Pichette states on the CC. Numbers for Google's reporting segments (sites, ad network, etc.) will be given in addition to a company-wide figure. (CC live blog)
    • The remarks come after Google reported disappointing Q1 paid click growth (-1% Q/Q and +26% Y/Y). The numbers might fuel questions about the impact mobile apps (they account for 86% of U.S. smartphone activity, per Flurry) are having on search activity. When indirectly asked about the issue, sales chief Nikesh Arora only said Google is trying to succeed in both realms.
    • Pichette states EPS was hurt by one-time legal and M&A expenses, and that Google's expenses would've been in-line with its targets otherwise.
    • Separately, re/code reports Marissa Mayer is intent on convincing Apple to abandon Google as its default iOS search provider in favor of Yahoo (YHOO). Google's dominant mindshare, together with Apple's Maps experience, might make Cupertino think twice.
    • GOOG now -2.8% AH. Q1 results, details.
  • Apr. 16, 2014, 4:15 PM
    • After falling 2% Q/Q in Q4 and 8% in Q3 thanks to mobile softness, Google's (GOOG) cost per click (ad prices) was flat Q/Q in Q1. On a Y/Y basis, it fell 9%.
    • Paid clicks (boosted by mobile and product listing ads) grew 26% Y/Y, a slower clip than Q4's 31% but even with Q3. Traffic acquisition costs fell to 23% of revenue from 24% in Q4 and 25% a year ago.
    • Google sites revenue (68% of total) +21% Y/Y vs. +22% in Q4. Ad network revenue (22% of total, pressured by policy changes) +4% vs. +3%. Other revenue (10% of total, includes Nexus hardware and search appliances) grew 48%, down from Q4's 99%.
    • Google spent aggressively: Opex rose to 35% of revenue from 33% in Q4 and 31% a year ago. Capex was $2.35B (15% of revenue), up from $2.26B in Q4. Free cash flow was $2.05B, well below net income of $4.3B. Headcount (exc. Motorola) rose to 46.2K from 43.8K at the end of Q4.
    • Google had $59.4B in cash at the end of Q4, +$700M Q/Q. Its Q1 tax rate was just 18%.
    • Q1 results, PR
  • Apr. 16, 2014, 4:02 PM
    • Google (GOOG): Q1 EPS of $6.27 misses by $0.15.
    • Revenue of $15.42B (+19.1% Y/Y) misses by $90M.
    • Shares -1.2%.
    • Press Release
  • Apr. 16, 2014, 12:10 AM
  • Apr. 15, 2014, 5:35 PM
  • Jan. 31, 2014, 11:44 AM
    • 13 sell-side firms have upped their Google (GOOG +3.6%) PTs following the company's mixed Q4 results and split announcement. Shares remain higher on a down day for equities.
    • Google's market cap now stands at $395B, and its enterprise value (market cap - net cash/investments) of $342B exceeds Apple's $301B.
    • Needham (Buy, PT raised to $1,350 from $1,150) is pleased with Google's accelerating international paid click growth (likely driven by mobile), and the strong performance of its "Other Google Revenue" segment (fueled by the Nexus 5 and Chromecast).
    • RBC (Outperform, PT upped to $1,400 from $1,300), like others, is happy Motorola ($384M Q4 op. loss) will soon be out of the way, and notes Google's core international revenue rose 30% Y/Y. It's also pleased traffic acquisition costs remain under control, and isn't too worried heavy investments led Google's core op. margin to fall 220 bps Y/Y.
    • UBS (Buy, PT raised to $1,350 from $1,300) thinks Google's cost per click (-11% Y/Y in Q4) will improve as Enhanced Campaigns and product listing ads gain more traction.
    • Shares currently go for 20x 2014E EPS (exc. net cash).
    • More on Google, CC transcript
  • Jan. 30, 2014, 4:31 PM
    • Google's (GOOG) paid click growth, boosted by mobile searches and product listing ads (PLAs), continued to accelerate in Q4. Paid clicks rose 31% Y/Y after growing 26% in Q3 and 23% in Q2.
    • At the same time, mobile continues taking a toll on ad prices: cost per click fell 2% Q/Q and 11% Y/Y after dropping 8% Y/Y in Q3 and 6% in Q2.
    • Google Sites revenue (67% of revenue exc. Motorola) rose 22% Y/Y, the same as Q3. Ad network revenue (23% of total), pressured lately by policy changes meant to improve the user experience, rose 3% vs. 1% in Q3. Other Google revenue (10% of total - Nexus, search appliances) rose 99% vs. 85%.
    • Opex was 33% of revenue, even with a year ago. A hefty $2.26B was spent on capex. Free cash flow was $2.98B, less than net income of $4.1B.
    • International sales made up 56% of revenue, flat Q/Q and up from 54% a year ago. Traffic acquisition costs were 24% of revenue, even with Q3 and down from 25% a year ago.
    • Ahead of the Lenovo deal, Motorola Mobility had Q4 revenue of $1.24B (-18% Y/Y), and an op. loss of $384M.
    • Google ended Q4 with $58.7B in cash/investments (much of it offshore), and $5.5B in debt.
    • Investors take the numbers in stride, GOOG +0.1% AH. CC getting started.
    • Q4 results, PR, slides
  • Jan. 30, 2014, 4:03 PM
    • Google Inc. (GOOG): Q4 EPS of $12.01 misses by $0.28.
    • Revenue of $16.86B (+17% Y/Y) beats by $100M.
    • Press Release
  • Jan. 30, 2014, 12:10 AM
  • Jan. 29, 2014, 5:35 PM
  • Jan. 28, 2014, 2:40 PM
    • Jefferies has upped its Google (GOOG +1.8%) PT to $1,300 from $1,150 ahead of Thursday's Q4 report. Citing ad partner data, traffic trends, and the firm's product listing ad study, the firm thinks Google's search ad business was "firing on all cylinders" in Q4. Expectations have risen a bit since Google delivered strong Q3 results in October.
    • Following up on its initial report about Google's acquisition of A.I. startup DeepMind, re/code reports DeepMind was working on at least three products: "A game with very advanced game AI, a smarter recommendation system for online commerce and something to do with images."
    • Meanwhile, an early investor gushes about DeepMind's talent. "If anyone builds something remotely resembling artificial general intelligence, this will be the team ... Think Manhattan Project for AI."
    • Google has already been investing heavily in A.I., a technology that arguably touches everything from Google Now to self-driving cars to Nest's thermostats to Boston Dynamics' robots. Google has already hired inventor/futurist Ray Kurzweil to help create a deep learning algorithm to help decipher the meanings of natural-language search queries and article texts. DeepMind's team could assist with that effort.
    • In partnership with health insurance provider VSP (previous), Google has rolled out $225 prescription glass frames that work with Google Glass. There's still no word on when Glass itself will see a full commercial launch.
  • Oct. 17, 2013, 4:24 PM
    • Google's (GOOG) ad prices (cost per click) fell 4% Q/Q and 8% Y/Y in Q3, after dropping 2% Q/Q and 6% Y/Y in Q2. However, its paid clicks rose 8% Q/Q and 26% Y/Y, an improvement from 23% Y/Y growth in Q2 and 20% in Q1. While the mobile transition (and perhaps Enhanced Campaigns) continues to pressure ad prices, it's also giving a lift to search volumes.
    • Traffic acquisition costs fell to 24% of ad revenue from 25% in Q2 and 26% a year ago. International made up 56% of revenue, up from 55% in Q2 and 53% a year ago.
    • Google Sites revenue (68% of Google segment revenue) +22% Y/Y, up from +18% in Q2. Google Network revenue (3rd-party sites, 23% of total) only +1%, down from Q2's +7% and Q1's +12%, as stricter policies continue taking a toll. Other Google Revenue (inc. Nexus hardware and search appliances, 9% of total) +85%.
    • Motorola Mobility, which launched the Moto X and new Droid models, posted revenue of $1.18B, +18% Q/Q but -34% Y/Y. The unit had a $248M op. loss.
    • Opex +9% Y/Y and accounting for 34% of revenue vs. 35% a year ago.  Capex was $2.29B, up from Q2's $1.6B. Free cash flow was $2.79B, below net income of $3.64B. Headcount rose by 1.6K to 46.4K.
    • GOOG +5.9% AH. CC at 4:30PM ET.
    • Q3 results, PR, slides
  • Oct. 17, 2013, 4:03 PM
    • Google (GOOG): Q3 EPS of $10.74 beats by $0.37.
    • Revenue of $14.89B beats by $0.05B. Shares +1.9% AH. (PR)
Visit Seeking Alpha's
GOOG vs. ETF Alternatives
Company Description
Google Inc is a web search and online advertising company. The Company offers search, online advertising, operating systems and platforms, enterprise and hardware products.