Google’s Revenues Reaches $16 Billion

Google’s second quarter this year has been quite successful from a financial point of view. The company’s latest report indicates that the revenues reached $16 billion (€11.8 billion), which is way over even the estimates coming from Wall Street.

However, much to the disappointment of financial analysts, the company’s earnings stood at $6.08 (€4.5) per diluted share, under the $6.24 (€4.61) predictions some had made, indicating that nothing can satisfy some people.

Overall, the revenues were up 22 percent over the same period from 2013, which is pretty impressive in itself. When it comes to profits, however, Google reported $3.42 billion (€2.52 billion), which is “only” 5.9 percent more than it had last year during the second trimester.

It should be noted, however, that Google has been making some pretty massive investments in the past few months, purchasing many companies to help it develop its brand even more, including into robotics, even if Google has been particularly quiet about its plans in the domain.

Furthermore, Google spent some $2.65 billion (€1.96 billion) on data center construction, real estate purchases and equipment. Just recently, it was reported that Google was buying a new building in San Francisco and renting another in the area, while a new office building in London has been in plans for more than a year. Architects were sent back to the drawing board a few months ago, after Google had a change of heart about the layout of the space and what it wanted out of it.

The company’s ad business is also doing great, if anyone was worrying. In fact, the company is selling more ads, proceeds from this area accounting for 90 percent of Google’s revenues. Paid clicks from the company’s ad network climbed nine percent, while those coming from Google’s own sites, including the search engine, Google Maps, YouTube and so on, were up 33 percent.

The cost per click seems to be going down everywhere online. After Yahoo reported a similar trend, Google too said that the cost per click on Google’s own sites went down 6 percent, while outside the company’s sites it slipped even more – by 13 percent.

Google also has a pretty large sum of money coming in from other sources, which include selling Nexus devices, Google Apps and the cloud services, as well as Chromecast, Glass and more. This area saw a solid growth, with revenues going up 53 percent from last year. In the first quarter of the year, however, Google’s revenues were up 99 percent for the same area