Google Shares Climb as Quarterly Earnings Impress
The search giant brought in $17.7 billion in revenue during the second quarter.
Google's second quarter earnings exceeded expectations on Thursday, when the search giant announced that it earned $6.99 per share, 29 cents more than Wall Street's estimated $6.70 per share.
Revenue shot up 11 percent during the second quarter to $17.73 billion, but fell just slightly below the $17.75 billion mark that analysts were anticipating. Revenue, excluding acquisition costs, was $14.35 billion, more than Wall Street's estimated $14.27 billion.
The strong second quarter performance sent Google shares, which closed the day up 3.5 percent to $580.04, up more than 7 percent during after-hours trading on the Nasdaq.
"Our strong Q2 results reflect continued growth across our breadth of products, most notably core search, where mobile stood out, as well as YouTube and programmatic advertising," new CFO Ruth Porat said in the earnings release. "We are focused every day on developing big new opportunities across a wide range of businesses. We will do so with great care regarding resource allocation."
Total advertising revenues at Google were up 11 percent year-over-year to $16 billion. Meanwhile, traffic acquisition costs during the quarter were $3.38 billion.
Paid clicks were up 18 percent while cost-per-clicks, the average price of its ads, fell 11 percent from the same period last year.