Alphabet beats by $0.58, beats on revs
- Reports Q2 (Jun) earnings of $5.01 per share, $0.58 better than the Capital IQ Consensus of $4.43; revenues rose 21.0% year/year to $26.01 bln vs the $25.61 bln Capital IQ Consensus.
- Operating Margin 16% compared to 28% in prior year; Recall this year includes the $2.7 bln fee paid to the EU.
- Google Properties revenue $18.42 bln, +19.6% y/y.
- Google Network Members properties revenue $4.24 bln, +13% y/y
- Other Bets Revenue- $248 mln, +34% y/y; Other Bets operating loss was ($772 mln), compared to street expectations of ($970 mln)
- Total TAC as a percentage of revenue was 22% compared to 21% in prior year period.
- Aggregate Clicks Paid: 52%; Q1 +44%; Q4 +36%, Q3 +33%; Q2 +29%.
- Paid Click on Google Properties +61%
- Paid Clicks on Google Network Member +9%
- Paid Click on Google Properties +61%
- Aggregate cost per click: -23%; Q1 -19%; Q4 -15%, Q3 -11%; Q2 -7%,
- CPC on Google Properties -26%
- CPC on Google Network Members properties -11%
- CPC on Google Properties -26%
- On June 27, 2017, the EC announced its decision that certain actions taken by Google regarding its display and ranking of shopping search results and ads infringed European competition law. The EC decision imposes a €2.42 billion (approximately $2.74 billion) fine, which we accrued in the second quarter of 2017. The fine is included in "accrued expense and other current liabilities" on our Consolidated Balance Sheet.