Monday, Jul 23rd 2018
Consistent improvement in its ad targeting & measurement tools, along with disciplined cost controls, resulted in yet another strong quarter for GOOG.
Alphabet is up +3% after-hours today after reporting excellent Q2 results. Revenue grew +23% year-over-year (on a constant currency basis) while adjusted earnings grew +32%. This put the company's revenue and earnings +1% and +22% above analysts' estimates, respectively.
The strong quarter was driven by outsized sales growth for Google's core properties (e.g. Google Search, Google Maps, etc), which drove revenue upside and flowed through to better-than-expected earnings. The detractor in the quarter was the "Other Bets" segment (e.g. Google X, Nest), which performed slightly weaker than expected.
The key metric that positively surprised us this quarter was paid clicks.
When you click on one of the ads Google places in/around its core properties (e.g. top of Google Search or Google Maps results), Google generates ad revenue from that click. Paid clicks grew an incredible +58% year-over-year, better than the market's +49% estimate.
These results suggest that advertisers continue to generate strong returns on their ad investments with Google.
CFO Ruth Porat
Consistent improvement in its ad targeting & measurement tools, along with disciplined cost controls, resulted in yet another strong quarter for GOOG. Our thesis continues to play out as expected.
We believe the stock is still very reasonably priced given its growth trajectory, profit margin expansion, and free cash flow generation.
Learn with titan
Become the smartest investor you've ever been through straightforward, easy-to-read investment articles.
Refer to Titan's Program Brochure for more information. Certain investments are not suitable for all investors. Before investing, consider your investment objectives and Titan’s fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members FINRA/SIPC. For more information, see our disclosures. Contact: 508 LaGuardia Place NY, NY 10012. Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice. Check the background of these firms on FINRA's BrokerCheck.
© Copyright 2022 Titan Global Capital Management, Inc. All Rights Reserved.