Google Conference Call Highlights
The prepared remarks of the call pretty much stayed to what was announced in the press release but Q&A provided some more color. Here are some of the initial highlights.
- Google noted that it saw a recovery in the UK. UK had a tough YoY comp in Q1 but not as tough in Q2 so UK saw a nice bounce back this quarter.
- Google Play margin opportunity? Has come from nowhere. Google gave away $5 bln to developers so that shows GOOG is benefiting as well.
- App indexing -- clearly this is an area of focus
- New screens for Android (watches etc.)? need to take a longer view, every screen has its own OS. Android is doing a good job at providing seamless experience, helping users move from one screen to others, there is a tremendous opportunity here.
- Retail was a strong vertical in the quarter. Google shopping express—users are delighted with the product
- Added 2,400 employees, highest headcount in a while, mostly in engineering and product management.
- Smartphone penetration? There is a long runway here, businesses are getting more serious about it, will monetize better than desktop over the long term.