Google 2Q15 Earnings Call Notes

Stock-based compensation was $1.2B, but please exclude that

“On a GAAP basis, operating profit was $4.8 billion and the operating margin was 27%. On a non-GAAP basis, that is excluding stock-based compensation, operating profit was $6 billion and the operating margin was 34%”

YouTube watch time is up 60% y/y

“Growth in watch time on YouTube has accelerated and is now up over 60% year-over-year, the fastest growth rate we’ve seen in two years. Mobile watch time has more than doubled from a year ago”

Solving problems creates monetization opportunities

“Google’s goal is to develop great new services that significantly improves the lives of as many people as possible. Solving problems for users at scale ultimately results in monetization opportunities.”

More searches now take place on mobile devices than PCs in ten countries

“More Google searches now take place on mobile devices than on computers in ten countries, including the U.S. and Japan, two of our largest markets. And we know that when people search on their mobile phones, they’re looking for immediacy and action”

30% of mobile searches are related to location

“30% of mobile queries are related to location and our efforts around local search are helping consumers to find relevant information fast.”

brand dollars are following the shift to digital content consumption

“As consumers continue to shift their content consumption from television to digital, brand dollars are flowing – I am sorry following, which we’re seeing an upfront buying through our Google preferred model.”

Youtube growth is just things coming together

“I think it’s really combination of all of the strength of YouTube coming together it starts with having over a billion users nearly almost one-third of all people on the internet everyday watching hundreds of millions of hours on the services and that creates billions of views ”

Big initiatives in online to offline conversion

“And then we’ve created way for advertisers to measure the impact of these ads on store visits. So just to give you a couple of examples, Target, one of our advertisers found that mobile search ads greatly influence in-store store sales and using our store visit data they found that a third of their paid search ads resulted in a user visiting a target store during 2014 holiday season. So we love to continue working with them and other advertisers to show the results and then build on that.”