Google 2nd Quarter Earnings Lukewarm, Yet Expected
Posted on 15. Jul, 2010 by Daniel Cawrey in News
Net revenue was better than expected, but not by much at $5.1 billion vs. $5 by analyst estimates. Gross revenue was up 24%. Adsense up 23%. Other (??) up 39%.
The most important revenue generator is obviously click-through advertising. Paid clicks were down in the second quarter, but are still up year over year and revenue per click was up.
Google says that advertising revenue could jump on their strategy for display ads, which they announced a partnership with Omnicom according to the Wall Street Journal.
I think they’re going to need to do something more substantial than display advertising. According to the WSJ report (apparently it’s behind a pay wall, I can’t find it on the web) many traditional ad agencies are leery of spending client’s dollars on display ad networks’ such as Google’s because they don’t believe that they are getting the best pricing they can.
GOOG stock finished up a few points today; we’ll see where it goes after the call.
Here’s the official release.
Conference call is at 4:30 PM EST on YouTube.
Business Insider is updating this page with live analysis.
