May 19, 2020

Google’s Q2 Revenue Exceeds Expectations as the Internet Giant Looks to the Future

US Technology
Google
Digital advertising
Jabong world
3 min
Google’s Q2 Revenue Exceeds Expectations as the Internet Giant Looks to the Future

Google has reported second quarter revenue that exceeds Wall Street expectations. The world’s largest search engine is trying to capitalize on sharp growth in mobile and video advertising, while investing considerably in new business.

Google posted net income of $3.42 billion ($4.99 a share), up from $3.23 billion, ($4.77 a share), in the same period a year earlier. Excluding stock-based compensation and other expenses, Google said it would have earned $6.08 a share. Revenue climbed 22 percent to $15.96 billion from $13.1 billion.

The posted results exclude its Motorola Mobility unit due to the fact it has agreed to sell to Lenovo Group.

Google has reported year-over-year revenue growth of more than 20 percent for several quarters, although that growth rate dipped to 19 percent in the first quarter of 2014, according to the Wall Street Journal. Earnings in that period were below analysts' expectations because of higher-than-projected spending, knocking the company's shares when it reported those results in April.

In after-hours trading, Google shares rose 2.3 percent to $594.

Still Dominating the Market

According to the Wall Street Journal, Google will account for more than one third of digital ad spending worldwide in 2014, dwarfing its nearest competitor Facebook, which will account for almost eight percent of the $140 billion market.

Having said that, a report from eMarketer estimates that Google is less dominant that both Facebook and Twitter in the mobile ad space.

“As people shift from personal computers to smartphones and tablets, web-based display advertising is suffering from weaker demand and lower prices,” said Alistair Barr, writing for WSJ.  

An Emphasis on Mobile

On Thursday Google reported revenue from its network business, including display advertising, climbed seven percent to $3.42 billion. In contrast, revenue from the company's own websites, which includes a lot of its main search advertising business, jumped 23 percent to $10.94 billion.

“The smaller screens of smartphones leave less space than PCs for display ads, and people are less likely to complete purchases on a phone after they click on digital ads. That makes advertisers less willing to pay up for mobile ads,” says Barr.

“Along those lines, the amount Google receives per ad click is decreasing as the number of clicks increases. Clicks on advertiser links next to Google's search results increased 25 percent from a year earlier, but the amount Google got paid per click fell 6 percent from a year earlier,” he continued.

Google doesn't break out its mobile ad revenue from desktop ad revenue, so it is tricky to see how the company is handling this difficult shift to smartphones and tablets.

Focusing on the Future

While battling with the shift between desktop and mobile, Google is also spending heavily to support both its current business and future innovations that may not drive revenue and profit for at least a decade. While this is having an impact on current earnings, analysts hope that investment will pay of later down the line. Google’s projects include self-driving cars, smart contact lenses and high-altitude Internet services.

In the second quarter, operating expenses jumped to $5.58 billion from $4.45 billion a year earlier. A big portion of that was research and development spending, which rose to $2.24 billion from $1,77 billion.

Capital expenditures - to build and stock data centers, for example - was $2.65 billion. The company has 52,069 employees, up from 49,829 as of March 31.

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Jun 18, 2021

Intelliwave SiteSense boosts APTIM material tracking

APTIM
Intelliwave
3 min
Intelliwave Technologies outlines how it provides data and visibility benefits for APTIM

“We’ve been engaged with the APTIM team since early 2019 providing SiteSense, our mobile construction SaaS solution, for their maintenance and construction projects, allowing them to track materials and equipment, and manage inventory.

We have been working with the APTIM team to standardize material tracking processes and procedures, ultimately with the goal of reducing the amount of time  spent looking for materials. Industry studies show that better management of materials can lead to a 16% increase in craft labour productivity.

Everyone knows construction is one of the oldest industries but it’s one of the least tech driven comparatively. About 95% of Engineering and Construction data captured goes unused, 13% of working hours are spent looking for data and around 30% of companies have applications that don’t integrate. 

With APTIM, we’re looking at early risk detection, through predictive analysis and forecasting of material constraints, integrating with the ecosystem of software platforms and reporting on real-time data with a ‘field-first’ focus – through initiatives like the Digital Foreman. The APTIM team has seen great wins in the field, utilising bar-code technology, to check in thousands of material items quickly compared to manual methods.

There are three key areas when it comes to successful Materials Management in the software sector – culture, technology, and vendor engagement.

Given the state of world affairs, access to data needs to be off site via the cloud to support remote working conditions, providing a ‘single source of truth’ accessed by many parties; the tech sector is always growing, so companies need faster and more reliable access to this cloud data; digital supply chain initiatives engage vendors a lot earlier in the process to drive collaboration and to engage with their clients, which gives more assurance as there is more emphasis on automating data capture. 

It’s been a challenging period with the pandemic, particularly for the supply chain. Look what happened in the Suez Canal – things can suddenly impact material costs and availability, and you really have to be more efficient to survive and succeed. Virtual system access can solve some issues and you need to look at data access in a wider net.

Solving problems comes down to better visibility, and proactively solving issues with vendors and enabling construction teams to execute their work. The biggest cause of delays is not being able to provide teams with what they need.

On average 2% of materials are lost or re-ordered, which only factors in the material cost, what is not captured is the duplicated effort of procurement, vendor and shipping costs, all of which have an environmental impact.

As things start to stabilise, APTIM continues to utilize SiteSense to boost efficiencies and solve productivity issues proactively. Integrating with 3D/4D modelling is just the precipice of what we can do. Access to data can help you firm up bids to win work, to make better cost estimates, and AI and ML are the next phase, providing an eco-system of tools.

A key focus for Intelliwave and APTIM is to increase the availability of data, whether it’s creating a data warehouse for visualisations or increasing integrations to provide additional value. We want to move to a more of an enterprise usage phase – up to now it’s been project based – so more people can access data in real time.

 

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