Google reports earnings after the market closes at 4 pm, east coast time. Well be covering it live, so tune in! Its been a busy quarter for Google. It announced that its working on drones, investing in an Amazon competitor, Google Express, and it just released a new smartphone, TV gadget, and tablet. It has also continued to face regulatory heat in Europe. In its last earnings, Google announced the departure of its long-time sales boss Nikesh Arora. Early employee Omid Kordestani stepped into the role temporarily, but maybe well hear about a more permanent candidate tomorrow. In terms of numbers, heres what analysts are expecting: Revenue: $13.22 billion EPS: $6.33 Heres the other stuff everyone will be looking at... CPC and Paid Click Growth Cost per click refers to what advertisers pay for each click on a search ad and growth in paid clicks measures how many users clicked on ads to generate revenue. Last quarter, paid clicks increased about 25% year-over-year while CPC was down 6% year-over-year. That was a modest increase of the first quarter of the year, when CPC was down 9% year-over-year. Analysts want to see the CPC decline stabilize. If CPC keeps declining, paid click growth would have to be more dramatic to make up for it, and analysts fear that there could be limits to the speed of its growth. Although Google has said that it eventually expects mobile ads to be more lucrative than desktop ads, theyre not there yet. Analysts also expect to hear about the strength of Googles product listing ads — PLAs — which are visual ads that give quick product information. Analysts at Jefferies want to see a 5% decline in CPC year-over-year and a 22% increase in paid clicks year-over-year to maintain Googles healthy ad business. Heres a look at the change in Googles CPC and paid click growth over the last few years, from Jefferies: YouTube Google doesnt break out specific ad revenues for YouTube, but analysts expect to hear about strong growth on the call. This year, Google started a new, premium sales initiative called Google Preferred, which pairs advertisers with top YouTube content. Google announced that Preferred sold out this week. Google Play Analysts also want to see growth driven by the Google Play store. Google also doesnt break out specific Google Play revenue, but it falls in the other revenues category. An analyst at BGC Partners says that the other revenue category should be above 10% of the total (last quarter it was exactly 10%). He was also look for core growth (sites revenue) to maintain 20% growth year-over-year. And thats about it... As we said, well be all over it, so tune in! SEE ALSO: How Google Is Going To Hurt Amazon During The Busiest Shopping Season Of The Year SEE ALSO: Googles First 21 Employees: Where Are They Now? Join the conversation about this story »
Posted on: Thu, 16 Oct 2014 12:40:05 +0000
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