Google said that second-quarter net income climbed two percent to $3.4 billion on an 11 percent rise in revenue to $17.7 billion.
The company said it had roughly $70 billion in cash and cash equivalents on hand. Shares of Google Inc rose nearly 12 percent as Web search leader’s profits beat forecasts for the first time in the last six quarters, boosted by strong advertising revenue. Google rallied to $673.50 in extended trading after closing at $601.78 on Nasdaq.
According to the financial report, YouTube and Mobile advertising were the main pillars of growth, as reported by The Verge. Paid clicks were up 18 percent and around 30 percent on Google websites. However CPCs were down 11 percent.
Ruth Porat, Chief Financial Officer, Google said that YouTube platform has been delivering great user engagement. The watch time across all of YouTube has increased 60% since 2014. She also stated that mobile watch time has doubled on YouTube year-over-year even though cost-per-click pricing is currently lower than normal on YouTube’s TrueView ads.
Porat asserted that there was tremendous potential in the fact that YouTube has more than one billion users and that the number of people in the 18-49 age group who watch YouTube videos on mobile devices was greater than the number watching cable television.
Google’s ad revenue has been under pressure as consumers access its services on mobile devices such as smartphones and tablets, whose ad rates are typically lower.