Behind Google Inc. (GOOG) Leadership Reshuffle

Google Inc. (NASDAQ:GOOG) reported impressive second-quarter earnings, but the departure of its long serving Chief Financial business officer Nikesh Arora was a significant loss to the company according to analysts on CNBC. Arora, who oversaw the company’s revenue as well as customer operations stepped down to take over as CEO of Japan’s Softbank.

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Google Inc. (NASDAQ:GOOG)’s second-quarter results according CNBC’s Jon Frott were strong highlighted by the fact that revenues grew by 20% after benefiting from a drop in costs per click. Google Inc. (NASDAQ:GOOG)’s cost per click had been a bone of contention among many analysts as it was considered extremely high especially on desktops compared to mobiles. Web search results as well as advertising revenue exceeded expectations in the second-quarter allowing the company to beat estimates on overall.

Less depression in the market and higher clicks on the Mobile than the desktop, was one of the reasons why Google Inc. (NASDAQ:GOOG) reduced the costs per click on Desktops according to Former Buzzfeed President & COO, Jon Steinberg. “I think all the analysts came out this time and said you know what, this is a temporary type thing. We are seeing less depression than we used to see, ultimately, the clicks on Mobile will be more valuable than clicks on the desktop.”

International growth was also strong although questions have been raised about the company’s capital expenditure of which Frott maintains should not be an issue as it highlights growth in the company in terms of expansion.

“International growth strong, you just go on down the line. The only thing that you might question is the capital expenditure, but if you want this stock to stay on top, they have got to spend money to do that” said Frott.

Google Inc. (NASDAQ:GOOG)’s second-quarter revenue excluding sales came in at $12.7 billion against analysts’ estimates of $12.3 billion. The company’s CEO, Larry Page, has already highlighted plans to add new features for boosting user traffic as well as attracting more marketers to boost Google’s ad business.


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