Google Inc. (GOOG) Earnings Q3, 2013: Revenue Surged Up But CPC Makes Publishers Be Anxious!

Must Read

Can CBD Gummies Be Beneficial For College Students?

College students often feel more pressure than they have ever—or will ever—feel in their entire lives. Many...

Will Google’s Move To Delete 2,500 YouTube Channels Add Fuel To The Fire With China?

The US-China trade war has started rearing its ugly head. Both sides are now turning to extreme...

India Enterprise IT Spending To Reach Rs. 1,910 Billion In 2012: Manufacturing And communication Industry To Drive The Growth

Manufacturing and Communication Industry is expected to drive the overall growth in the years to come. Sectors like Education,...

Google Inc. (NASDAQ:GOOG) has managed to beat Industry prediction on third-quarter revenue with a negligible margin as the search giant announced its Q3, 2013 earnings report on Thursday, October 17, 2013. The company reported $14.9 billion as revenue for Q3, 2013, up by 12% compared to the third quarter of 2012. The revenue attainment resulted in $2.97 billion in net income, up from $2.18 billion in same quarter of last year.

“Google had another strong quarter with $14.9 billion in revenue and great product progress,” Larry Page, Google’s CEO, said in a statement. “We are closing in on our goal of a beautiful, simple, and intuitive experience regardless of your device.”

The major highlights of Google’s earnings Q3, 2013:

  • $14.89 billion in revenues in Q3, 2013
  •  Operating income increase to 23% of revenue, from 21% a year ago.
  • Google-owned sites contributed $9.39 billion, or 68 percent of total Google revenues, with Google Network bringing in $3.15 billion and “other” a total of $1.23 billion.
  • 56 percent of Google revenues originated from countries other than the U.S.
  • Google now has cash, cash equivalents, and marketable securities totaling $56.52 billion.
  • Earnings Per Share of $8.75, up from $6.53 last year

google-revenues-Q3 2013

 

Motorola Mobility Performance Disappointed

The bad part of such overwhelming performance came in the form of Motorola Mobility – a company that Google acquired in 2012 for $12.5 billion. The revenue of Motorola Mobility declined to $1.18 billion in Q3, 2013 from $1.78 billion during the same period in 2012. By contributing mere 8% to Google’s total revenue, Motorola Mobility posted loss of $248 million in Q3, 2013.

Advertisements

Online Publishers Must Be Worried?

The interesting fact of the complete report remained the growth in Cost-Per-Click (CPC) that has a significant impact on Google’s revenue every quarter. The number of paid clicks, though, went up by 26% over a year, decline in Cost-Per-Click (CPC) continued and it dived down by 8% compared to Q3, 2012. In last quarter, the company registered the decline of 4% in CPC. This can attract direct impact on publishers’ earnings, which is pegged to Google CPC. As CPC continues to fall, majority of online publishers could face nearly 6% – 8% in their total earnings from Google Adsense.

The low CPC indicates the growing competition in Online advertising market for Google. Emergence of multiple local advertising networks and social media – especially Facebook – has forced Google to offer its advertising inventory at reduced 8% price.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

OYO Introduces New Initiatives to Increase Employee Satisfaction

With work from home having become the new norm for most Indian startups due to mandatory social...

Amid Acquisition Talks, TikTok Gearing Up For A Legal Battle!

Desperate times call for extreme measures. The popular short-form video app TikTok has been facing unprecedented amounts of backlash from Uncle Sam...

PAN-Aadhaar link: 32.71 Crore Indians Can Now Reap the Benefits

The agenda to link every citizen's Aadhaar card with their PAN card has been on the Indian Government's radar ever since 2017....

When A City Had To Pay Ransom To Cyber Criminals!

While the rapid advancement in technology surely did gift us with newer and more powerful devices, be it smartphones or iPads, it...

Can Twitter’s New Feature Really Make You Feel Safe?

Twitter has been on what seems like a campaign to make the site a place for more meaningful conversations among users. Ever...

TikTok Acquisition: Not A Cake Walk for Microsoft

After President Trump announced an order banning US companies' transactions with Chinese businesses, which is set to come into effect 45 days...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This