Here are the remarks I just made on the earnings call.
q3 results: http://investor.google.com/earnings/2012/Q3_google_earnings.html
Hello everyone -- thanks for joining us. It’s great to be on the call today and to share our progress since we last spoke six months ago. As you can hear my voice is still hoarse so I will keep my remarks reasonably short.
I am sorry for the scramble earlier today. As our printers have said, they hit send on the release just a bit early.
We had a strong quarter -- I am really happy with our business.
Revenue was up 45 per cent year-on-year, and, at just fourteen years old, we cleared our first $14 billion revenue quarter. Not bad for a teenager!
Today, we live in a world of abundance… abundant information and abundant computing.
Most of us carry at least one device, all the time, every day. In fact many of us would feel naked without our smartphone. It’s hardly surprising mobile search queries -- and mobile commerce -- are growing dramatically across the world.
And we use these devices interchangeably, depending on our situation. I switch between my Nexus phone, Nexus 7 tablet and my new Chromebook that we just announced today many times a day.
While this abundance causes disruption, it also creates amazing opportunity. And Google is super well-placed to take advantage of these disruptive opportunities.
Why? Because our search query volumes have grown this quarter as measured year over year. And we are seeing tremendous innovation in advertising which, I believe, will help us monetize mobile queries more effectively than desktop today. Indeed our mobile monetization per query is already a significant fraction compared to desktop.
In short, as we transition from one screen to multiscreens, Google has enormous opportunities to innovate and drive ever higher monetization. Just like Search in 2000.
Now we took a big bet on Android back in 2005. We believed that aligning standards around an open source operating system would drive innovation across the industry. Most people thought we were nuts.
Today there are over half a billion Android devices-
half a billion -
with 1.3 million more being activated every day. You should all run out and buy the Nexus 7 tablet for $199. It’s had rave reviews and recently won “Gadget of the Year” from T3, the gadget experts. You’ll love the integration with Google Play. It is an amazing device.
This time last year I announced that our run-rate for mobile advertising hit $2.5 billion. That seemed like a pretty big number -- even for Google. Now we have built up additional mobile revenue from users paying for content and apps in Google Play. Including these new sources grossed up, I can announce our new run-rate for mobile is now over $8 billion. That’s quite a business.
We have so many opportunities today, that unless we prioritize we spread ourselves too thin. Last month, we sunset another 19 products. We’ve now closed or have combined 60 products and features in the last year. And, we’ve put a ton of energy into ensuring that our remaining products work really well together. Because as screens multiply, it’s more important than ever that we converge our services.
Users want one consistent, beautiful and simple Google experience. Technology should do all the hard work, liberating users to get on with the important things that matter in their lives. And this screen independence is at the core of our strategy.
Take Chrome on Android, for example. We only launched in February but the experience is already amazing. When you are using Chrome, switching devices is truly painless. All your tabs are there, ready to go. Search on your desktop and the result is right there on your smartphone. You can even click the back button, and it just works. And as more users upgrade to Google+ -- it’s now over 400 million -- users are enjoying amazing experiences across devices like instant photo upload.
In the same way, we want to make advertising super simple for customers. Online advertising has developed in very device specific ways, with separate campaigns for desktop and mobile. This makes arduous work for advertisers and agencies, and means mobile opportunities often get missed.
So we’re working to significantly simplify the campaign experience -- working very hard on that. Advertisers should be free to think about their audience, while we do the hard work of dynamically adapting their campaigns across devices. I’m very excited about this.
I talked at the start about the abundance of information. In the early days of Google, you would type in a query, we’d return ten blue links, and you would move on fairly happily. Today you expect more. You expect Google to understand deeply. And you expect us to turn your intentions into actions in the blink of an eye.
If you search for “Tom Hanks movies”, chances are you want … movies with Tom Hanks! And thanks to our Knowledge Graph that’s what we show now -- right from the results page: clean, fast, and organized.
And if you’re shopping, say for “Ugg boots”, we now give you pictures, details about the different boots, prices and information about local inventory -- again right from the results page: clean, fast, and organized.
There’s much more we can do to get you the right information at just the right time.
You might have have a really important event in the city (perhaps a first date), and the traffic is bad. You need to leave early to avoid being late. Or maybe you’ve just landed in a new country and you’re at the airport ATM trying to figure out how much cash to withdraw? Google Now, which we launched on Android in June, gives you all that information and more … automatically, with zero effort required on your part.
It’s still early days but these kinds of tips and recommendations are super powerful. They really save users time and hassle. This is why I’m incredibly excited about the opportunities ahead, given our expertise in Search and Mobile, and our track record monetizing high usage products.
Everyday, I wake up and I’m delighted that our opportunities keep growing. And, that we’re birthing to our users great products that are defining the future. It’s a truly exciting time to be at Google!