Google Q4 2015: Clicks Up 31%, CPCs Down 13%

Wall Street finally got a peak behind-the-curtain at Alphabet, the new parent of Google & the company’s various other venture business units, as Q4 2015 earnings were announced. This was the first time investors got to see Google’s core business’ finances listed out separately from Alphabet’s other less profitable ventures.

Google Q4 2015 earnings beat expectations, with $21.3 billion in revenue vs. $20.8 billion expected. For all of 2015, Google netted nearly $75 billion in revenue—just about what Apple posted for the quarter; though, it’s worth noting, analysts are more bullish on Alphabet’s outlook, especially now that the company’s “other ventures” (read: everything not the core business) are separated on the financial reports.

Paid clicks on Google itself rose 40%, anticipated during the busy holiday shopping season (evident by the record-setting Cyber Monday), while the Search Network grew 2%. Aggregate cost per click dropped 13%—perhaps, some due to the increase of mobile traffic, or, as Google explained previously, YouTube’s TrueView product.

Via Alphabet Q4 2015 Earnings

Interestingly, unlike in the past, investors didn’t seem concerned about the 13% dip in CPCs—as evidence by the 5% after-hours bump on the stock price following the Q4 results call.

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