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Google's Ad Revenue Climbs 24%, Paid Clicks Surge 58%

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The release of Google parent Alphabet Inc.’s (GOOGL - Free Report) second quarter financial results took center stage Monday afternoon, with shares up over 5% following strong top and bottom line beats.

Google posted adjusted Q2 earnings that topped the Zacks Consensus Estimate of $9.51 per share. The company also reported total revenues of $32.65 billion, which marked a 26% climb from the year-ago period. Taking out revenues from Google Network Members, the company saw revenue figures of $27.84 billion, surpassing our consensus estimate of $25.65 billion (also read: Alphabet Crushes Earnings, Surges 5% on Strong Performance).

On top of Alphabet’s basic earnings and revenue results, investors are also likely interested in the company’s growth in specific business areas. Google’s search business has powered the company for years. But the firm has made an effort to enter an array of industries that are set to boom, from mobile payments to cloud computing and artificial intelligence.

Advertising

Alphabet, which has become the most powerful advertising player in the U.S., along with Facebook , reported revenue of $28.09 billion in its vitally important advertising unit. This marked a roughly 24% climb from the year-ago quarter’s $22.67 billion. Furthermore, paid clicks on Google properties soared 58%.

The expansion of Google’s advertising business is staggering and continues to be amazing news for investors because there was a time not too long ago that people feared the shift to mobile would negatively impact Google’s bread and butter advertising business.

Google Other Revenues

The second quarter also saw the company’s “Google other revenues” category, which is comprised of the Google Play Store, Google Cloud offerings, and its hardware initiatives, including its growing Nest “smart” home automation division, surge by over 36% to hit $4.43 billion.

Other Bets

Alphabet’s Other Bets unit features Google Fiber, which provides broadband internet services in select cities throughout the U.S., Alphabet's life sciences brand, Verily, and other more outside of the box initiatives. Other Bets revenues climbed by nearly 50% from $97 million to hit $145 million.

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