Why Google’s Q3 earnings stunk — Jordan Koene // Previsible

Jordan Koene, Co-Founder and CEO of PreVisible, discusses what’s happening in SEO news. Facebook, Snapchat, Twitter, etc have been struggling with revenue and earnings for their core advertising businesses as the ad spending slowdown continues. In contrast, Google has been able to increase earnings for Google Ads over the last quarter, but failed to hit their revenue and profit expectations targets for the quarter. Today, Jordan talks about why Google's Q3 earnings stunk.
About the speaker

Jordan Koene

Previsible

is a little camera shy

Jordan is CEO and Co-Founder of Previsible.io

Show Notes

  • 02:36
    Googles Q3 earnings
    While a lot of other players in the ad media space saw a reduction in their revenue, Google saw a 6% increase. Google Ads and Google Cloud revenue went up by $2 billion each in this past quarter.
  • 03:39
    Googles Cloud revenue growth
    Google's $2 billion Cloud revenue growth is a significant increase for the cloud business. This is almost a 40% to 50% increase for the Google Cloud business.
  • 04:56
    Why Google was so disappointing this quarter
    Google was unable to hit the revenue and profit targets it had set for the quarter. So, while Google Ads and Google Cloud showed positive gains, YouTube and the Google Network did not perform well.
  • 05:45
    What the Google Network is
    The Google Network refers to the network of advertisers, partners, and websites where Google ads are featured and distributed. Youtube advertising and the display network did not meet expectations for the quarter.
  • 06:37
    Factors contributing to Googles decrease in revenue this quarter
    Google EMEAs revenue shrunk in comparison to the US for this quarter. Area 120 costs increased by half a billion dollars more this quarter compared to last year and employees had to be laid off.
  • 08:45
    What the future could look like for Google Ads and Google Cloud
    If Google is able to sustain the growth in Google Ads, this will be positive for them and their investors. In the cloud segment, their growth has happened quickly and Google Cloud could become a secondary revenue stream of sustainability for them.
  • 11:27
    How Google stacks up against other advertising players
    Platforms like Facebook, Snapchat, and Twitter are struggling with earnings for their core advertising business. On the other hand, Google Ads continues to grow during an economic downturn.

Quotes

  • "Google search ad revenue grew by $2 billion and Google Cloud revenue also grew by $2 billion in this past quarter, year over year." -Jordan Koene, CEO, PreVisible

  • "As your costs go up, if your revenues aren't growing as fast, you wont be able to sustain the rates that the market and the company have set for the year." -Jordan Koene, CEO, PreVisible

  • "Google EMEA didn't grow at all. They actually shrunk in terms of their revenue compared to the United States in this past quarter." -Jordan Koene, CEO, PreVisible

  • "If they can sustain growth in their highest driving revenue line item, Google Ads, over the next quarter or two, this is going to be a very viable place for Google to be." -Jordan Koene, CEO, PreVisible

  • "Facebook had a 4% year over year reduction in ad revenue. That's a big difference from the 6% growth year over year that Google has achieved." -Jordan Koene, CEO, PreVisible

  • "Facebook is in a very precarious scenario if they can't improve the utility of their platform and entice more users to sign up and use their products at the same time as their ad revenue is going down." -Jordan Koene, CEO, PreVisible

About the speaker

Jordan Koene

Previsible

is a little camera shy

Jordan is CEO and Co-Founder of Previsible.io

Up Next: