After a Q1 that disappointed investors somewhat, Google parent Alphabet delivered a big quarter yesterday. The company announced revenues of $21.5 billion, which represented 21 percent growth year-over-year and beat analysts’ consensus estimates by more than $700 million.
Paid clicks were up nearly 30 percent, which was also an expectations beat. However, CPCs were off 7 percent. Traffic acquisition costs were roughly $4 billion, up 18 percent, representing 21 percent of total ad revenue.
Google segment revenue was approximately 99 percent of total revenue.
Revenue associated longer-term projects and “moonshots” (so-called “other bets”) was $185 million, primarily from primarily Google Fiber and Nest, against losses of $859 million. This compares with losses of $660 million a year ago.
The company reported headcount of roughly 66,000 — Microsoft has 114,000 employees by comparison. Alphabet also reported that it had $78.5 billion in cash and cash equivalents on hand.
During the earnings call Alphabet CFO Ruth Porat explained that revenue growth was driven “primarily by mobile search.” The company also said that beyond mobile search, growth is coming from video and programmatic. Video (YouTube) growth is also being powered by mobile users.