Google revenues climb 21 percent to $21.5 billion, powered by mobile

After a Q1 that disappointed investors somewhat, Google parent Alphabet delivered a big quarter yesterday. The company announced revenues of $21.5 billion, which represented 21 percent year-over-year growth and beat analysts’ consensus estimates by more than $700 million.

Paid clicks were up nearly 30 percent, which was also beat expectations. However, CPCs were off seven percent. Traffic acquisition costs were roughly $4 billion, up 18 percent, representing 21 percent of total ad revenue.

Google segment revenue was approximately 99 percent of total revenue.

Revenue associated with longer-term projects and “moonshots” (so-called “other bets”) was $185 million, primarily from Google Fiber and Nest, against losses of $859 million. This compares with losses of $660 million a year ago.

The company reported a head count of roughly 66,000 — Microsoft has 114,000 employees by comparison. Alphabet also reported that it had $78.5 billion in cash and cash equivalents on hand.

During the earnings call, Alphabet CFO Ruth Porat explained that revenue growth was driven “primarily by mobile search.” The company also said that beyond mobile search, growth is coming from video and programmatic. Video (YouTube) growth is also being powered by mobile users.