Google misses by $0.15, beats on revs
Reports Q2 (Jun) earnings of $6.08 per share, $0.15 worse than the Capital IQ Consensus Estimate of $6.23; revenues rose 13.1% year/year to $15.96 bln vs the $15.61 bln consensus.
Sites Revenues - $10.94 billion, or 69% of total revenues, in Q2, +23% y/y.
Network Revenues - $3.42 billion, or 21% of total revenues, in Q2, +7% y/y.
Other Revenues - $1.60 billion, or 10% of total revenues, in Q2, +53% y/y.
International Revenues - $9.33 billion, representing 58% of total revenues in Q2, compared to 57% in Q1 and 55% in 2Q13.
>>>Clicks
Paid Clicks increased approximately 25% y/y (In line with expectations) and increased approximately 2% q/q. Sites paid clicks, which include clicks related to ads we serve on Google owned and operated properties across different geographies and form factors including search, YouTube engagement ads like TrueView, and other owned and operated properties like Maps and Finance, increased approximately 33% y/y and 6% q/q. Network paid clicks increased ~9% y/y and decreased 5% q/q.
Cost-Per-Click decreased approximately 6% y/y and remained constant q/q. Cost-per-click for Google sites decreased ~7% y/y and decreased approximately 2% q/q.
>>>TAC
Traffic acquisition costs, the portion of revenues shared with Google's partners, increased to $3.29 billion in the second quarter of 2014, compared to $3.01 billion in the second quarter of 2013. TAC as a percentage of advertising revenues was 23% in the second quarter of 2014, compared to 25% in the second quarter of 2013.
Cash Flow and Capital Expenditures
Net cash provided by operating activities in the second quarter of 2014 totaled $5.63 billion, compared to $4.71 billion in the second quarter of 2013. In the second quarter of 2014, capital expenditures were $2.65 billion, the majority of which was for data-center construction, real estate purchases, and production equipment. Free cash flow, an alternative non-GAAP measure of liquidity, is defined as net cash provided by operating activities less capital expenditures. In the second quarter of 2014, free cash flow was $2.98 billion. We expect to continue to make significant capital expenditures.
>>>Cash
As of June 30, 2014, cash, cash equivalents, and marketable securities were $61.20 billion, which excludes cash classified as held for sale, compared to $58.72 billion as of December 31, 2013.