parent company Alphabet has released its Q2 2018 earnings and the numbers are mind blowing, with revenues of $32.7 billion for the quarter and just $2.8 billion for operating income. What makes these figures impressive is they were able to achieve this even with the $5 billion Google fine.
The numbers show that if the fine didn't come up, Google could have been recording $7.88 billion in operating income instead of the $2.8 billion recorded, that is $1 billion higher than the same quarter last year.
According to the report, advertising on Google's own properties and its network members' properties has been a huge contributing factor to this numbers, which amounts to about $28 billion for the quarter. Other revenues segment — including the hardware business, Play Store, etc, made up the remaining $4.4 billion.
Google is focusing on its cloud business, added over 13,000 employees since Q2 2017, now putting the total headcount for the company at over 89,000 — Google says this was primarily in the cloud portion of the business. That's absolutely massive, and at this rate, it means we'll be seeing that number breach six figures by early 2019.
In terms of advertising, The trend of increasing traffic acquisition costs which is what Google spends to acquire advertising traffic continued in Q2 2018, though just narrowly. Paid clicks were up 15% year-over-year, though that's a deceleration from an increase of 58% from Q2 2016 to 2017.
Cost-per-click is still on the same negative trend from previous years, though it too has reduced its fall — down to negative 10% from negative 22% the year prior. In all, it's the same trend: it costs more to drive traffic to Google's advertising, and the cost per click is going down.
Labels: Business, Google, Tech News, Tech Worldwide, Technology