Google Inc (GOOG)’s Fourth Quarter 2014 Earnings Conference Call Transcript

Lastly, if you go through the CAPEX line, you’ll note that we’ve made, uh, real estate purchases in Q4, and which helped us relieve both pressure on our work space for current employees but also to accommodate our future growth. And this also resulted in a large sequential increase in our real estate capital expenditures this quarter. So now that you have the basics, why don’t we dive into the details?

Our gross total consolidated revenue grew 15% year over year to $18.1 billion, and it was up 10% quarter over quarter. Without currency fluctuations our gross consolidated revenue growth would have in fact been 18% year over year. And despite all the FX pressure our Google sites revenue was up a healthy 18% year over year to $12.4 billion, was up 10% quarter over quarter, in part driven by the strength in our mobile search.

Network revenue was up 6% year over year at $3.7 billion and was up 8% quarter over quarter. As a reminder, our network business includes really two types of businesses with different growth profiles. Our legacy AdSense business, particularly AdSense for search, where we’ve continued to make policy changes for the benefit of our user experience, but which has negatively impacted the growth in clicks specifically.

Um, our clean up efforts have resulted in fewer clicks but also higher CPCs as I’ll discuss in a minute. The other business that in the network line are newer display and programmatic businesses including AdMob, AdExchange, DoubleClick Bid Manager, and these continue to grow at a strong rate. Finally, Google’s other revenue grew 19% year over year to $2 billion was up 6% quarter over quarter, driven by year over year growth in our play store, but offset by the FX impact and the challenges in our hardware business I mentioned earlier.

Our global aggregate paid clicks were up 14% year over year, and up 11% quarter over quarter. Aggregate CPCs were down 3% year over year and also down 3% quarter over quarter. And if we go on our monetization by property, the Google site paid clicks were up 25% year over year and up 18% quarter over quarter. With Google sites CPCs were down 8% year over year and down 8% quarter over quarter.