Google Revenues Climb 22 Per Cent as Arora Heads for SoftBank

Nikesh_Arora(cropped)Google has released its financial data for Q2 of 2014, revealing revenues of $15.96bn (£9.33bn) and net income of $3.42bn. However, the key news from the release is that Nikesh Arora, the Chief Business Officer and 10 year veteran of the search giant, is leaving the company for tech conglomerate SoftBank.

The announcement of Aroras departure was brief, noting that he would be joining Google partner SoftBank as Vice Chairman of SoftBank Corp and CEO of SoftBank Internet and Media. Omid Kordestani, another longstanding business figure at Google, will be filling his role for the forseeable future, although apparently not permanently.

On his Google+ page, CEO Larry Page called Arora “a tremendous leader, adviser and mentor to many Googlers – including me. We have learned a lot together, and had a lot of fun along the way.”

Looking at the figures Google released, revenues have climbed 22 per cent compared to the same period in 2013, while net income is up by 5.88 per cent year-on-year. While revenues from Googles sites and network constituted the largest part of the money coming in, accounting for $14.36bn or 90 per cent of revenues, it was revenues from other sources that saw the largest growth, with a 53 per cent increase from last year.

Despite its sale to Lenovo Group at the start of the year, Motorola continued to weigh down Googles profits, representing a $68m loss from continued operations and $1.36bn in assets held for sale.

As was expected, paid clicks rose 25 per cent compared to last year, while the cost per click fell 6 per cent, with Google seeking more and more connections with customers as the growth of mobile search causes cost per click to fall. Paid clicks on Google sites and properties rose 33 per cent year-on-year, while those on network sites – meaning ads served by Google on other sites, only grew by 9 per cent. Cost per click fell 7 per cent on Google sites, and more dramatically by 13 per cent on network sites.