Alphabet - Earnings Call - Q2 2012
July 19, 2012
Transcript
Operator (participant)
Please stand by. We're about to begin. Good day, everyone, and welcome to the Google Inc Second Quarter 2012 Earnings Conference Call. Today's call is being recorded. At this time, I'd like to turn the conference over to Willa Lau, Investor Relations Manager. Please go ahead, ma'am.
Willa Lau (Investor Relations Manager)
Good afternoon, everyone, and welcome to today's Second Quarter 2012 Earnings Conference Call. With us are Patrick Pichette, Senior Vice President and Chief Financial Officer, Nikesh Arora, Senior Vice President and Chief Business Officer, Susan Wojcicki, Senior Vice President Advertising. Also, as you know, we distribute our earnings release through our Investor Relations website located at investor.google.com. So please refer to our website for our earnings releases, as well as the supplementary slides that accompany the call. This call is also being webcast from investor.google.com. A replay of the call will be available on our website later today. Now, let me quickly cover the safe harbor. Some of the statements that we make today may be considered forward-looking, including statements regarding Google's future investments, our long-term growth, and innovation, the expected performance of our businesses, and our expected level of capital expenditures.
These statements involve a number of risks and uncertainties that could cause actual results to differ materially. Please note that these forward-looking statements reflect our opinions only as of the date of this presentation, and we undertake no obligation to revise or publicly release the results of any revisions to these forward-looking statements in light of new information or future events. Please refer to our SEC filings for a more detailed description of the risk factors that may affect our results. Please note that certain financial measures that we use on this call, such as operating income and operating margin, are expressed on a non-GAAP basis and have been adjusted to exclude charges related to stock-based compensation. We have also adjusted our net cash provided by operating activities to remove capital expenditures, which we refer to as free cash flow.
Our GAAP results and reconciliations of non-GAAP to GAAP measures can be found in our earnings press release. With that, I will turn the call to Patrick.
Patrick Pichette (SVP and CFO)
Thank you, Willa, and good afternoon, everyone. Thank you for joining us, so well, this is a special call as we enter into a new chapter in our history at Google here with our recent acquisition of Motorola, and with it comes a new set of financial information for all of you, both at a consolidated but also at the segment level, so speaking of Motorola, it's worth noting that given the recent close of the transaction, we can expect this specific segment of our financials to continue to show some accounting variability, so for example, this quarter, it's a stub period, meaning it only reflects the results since the acquisition date rather than the full quarter, and as a result of the close, we did a number of accounting adjustments typical for such transactions.
So, we'll try to do our best to answer your questions on this call, and our Investor Relations team will also continue to support the analyst and investor community during this transition. So now, let's quickly cover our consolidated result as well as segmented reporting for both Google and Motorola. Our gross total consolidated revenue grew 35% year-over-year to $12.2 billion and 15% quarter over quarter. So again, please remember that these total consolidated numbers include a stub period for Motorola. Additionally, there was a significant year-over-year currency headwind in Q2. In fixed FX, revenue would have grown to 39% year-over-year instead of 35%. Google on a standalone gross revenue grew 21% year-over-year to $11 billion and 3% quarter over quarter.
Our Google website revenue was up 21% year-over-year to $7.5 billion and 3% quarter over quarter, which tracks across most major geographies and verticals. Google network revenue grew 20% year-over-year to $3 billion and 2% quarter over quarter. Our other revenue line grew by 42% year-over-year to $439 million and 5% quarter over quarter. It's again worth noting that in fixed FX, our revenue would have grown 25% year-over-year. Motorola grew revenue for the stub period since May 22nd at $1.3 billion. Our mobile devices revenue for that period was $843 million, encouraged by the strength of the North American Verizon franchise driven by the RAZR MAXX sales, although we've seen also weaker revenues that were driven by the declining international sales of feature phones and mid-tier smartphones. The home business revenue was $407 million.
The core metrics of Google's standalone business continue to perform very well against the backdrop of a somewhat difficult global economic environment. Our global aggregate paid click growth was very strong, up 42% year-over-year and also up 1% quarter over quarter. Our aggregate cost per click growth was down 16% year-over-year and up 1% quarter over quarter. Please remember that the currency headwinds also obviously had a quite negative impact on the CPCs in Q2. Turning to geographic performance of Google's standalone business, the U.S., U.K., and rest of the world are growing at a good pace, as reflected in our results. In our earnings slides, which you'll find on our Investor Relations website, you'll see that we've broken down our revenue by U.S., U.K., and rest of the world to show the impact of FX and the benefits of our hedging program.
Please refer to those slides for those exact calculations. Revenue from the U.S. was up 20% year-over-year to $5 billion. Our non-U.S. revenue accounted for 54% of our total revenue, or $6 billion, and was up 22% year-over-year, which includes an $81 million benefit from our hedging program. The U.K. was up 20% year-over-year to $1.2 billion. In fixed FX terms, in fact, the U.K. grew 23%. Coming back to an aggregate level for the total consolidated business, other cost of revenue was $2.3 billion in Q2. Our non-GAAP operating expenses totaled $3.3 billion, which excludes stock-based compensation and charges related to the severance and benefit arrangements in connection with the Motorola acquisition of $652 million. Our non-GAAP operating profit was $4 billion in Q2, resulting in a non-GAAP operating margin of 32.3%.
For standalone Google, our traffic acquisition costs were $2.6 billion, or 24.7% of total advertising revenue. Our other cost of revenue was $1.3 billion, and that's excluding SBC of $82 million. Our non-GAAP operating expenses were $3.1 billion, also excluding SBC of $470 million. Finally, non-GAAP operating profit was $4 billion in Q2, resulting in a non-GAAP operating margin of 36.4%. This continued strong margin in our standalone Google business segment gives us the confidence to continue to fully fund our many strategic growth areas such as mobile, Android, YouTube, and Chrome. Obviously, Susan and Nikesh will go into more details of our initiatives in a minute. At Motorola, our non-GAAP operating expenses, including cost of revenue for the stub period, were $1.3 billion, and keep in mind that intangible amortization of expenses and the step-up cost attributed to standalone Google and Motorola are included in these non-GAAP measures.
As a result, the non-GAAP operating loss at Motorola was minus $38 million in Q2, resulting in a non-GAAP operating margin of minus 3% for that specific segment. Headcount increased roughly 21,500 in Q2. Obviously, Google itself added about 1,200, while the remainder of this number includes the Motorola employees who joined in the acquisition. In total, the consolidated company ended the quarter at around 54,600 employees, full-time employees, that is. Our effective tax rate was 19% in Q2, and that reflects not only the mix of earnings between domestic and international subsidiaries and our hedges, but also capital gains offset by carried-over capital losses. Let me quickly turn to cash management.
Other income and expenses was $254 million for the quarter, which reflects gains related to a divestiture of a business, offset somewhat by lower interest income and by the impact of our FAS 133 expenses from our hedging program. For more details on OI&E, please again refer to the slides that accompany our call on our IR website. Operating cash flow was very strong at $4.3 billion for the second quarter. CapEx for the quarter was $774 million versus last quarter at $607 million. The majority of our CapEx was spent really related to production equipment, facilities, and land purchases, and obviously, we were pleased with our free cash flow, which was $3.5 billion. Now, let me hand it over to Nikesh, who will cover more details of our business performance in the quarter.
Then Susan will cover our product highlights, and then finally, we'll open up the lines for your questions. And please note that Nikesh and Susan will discuss only the standalone Google business and not cover Motorola. So let me turn it over to Nikesh.
Nikesh Arora (SVP and Chief Business Officer)
Thank you, Patrick, and hello, everyone. Our business had a very strong quarter, as you heard, with over $11 billion in revenue. I'm going to talk about three broad themes today. First, how our recent big bets in the ad business are coming together into integrated platforms. I think digital advertising is really in defrag mode. Secondly, we'll take a look under the hood at how our investments in search advertising and ads quality are helping our search business accelerate. And third, we're going to talk a bit about our enterprise business, which I believe is reaching a real tipping point. Then I'll discuss some ways we're driving success for our customers and some marketing highlights. So first, our big bets. In about four years, DoubleClick has gone from strength to strength at Google. Now, it is the foundation of our display business.
This quarter, we announced DoubleClick Digital Marketing, the first modern ad platform for the modern digital world. This was the biggest ever overhaul of our DoubleClick ad platform. It is used by thousands of agencies and marketers, and we manage billions in marketing spent across the world on this platform. It now spans the best of display, rich media, exchange buying, search, and measurement. Two of our recent display acquisitions, Teracent and Invite Media, which both grew by over 50% last year, are also seamlessly integrated into this platform. At the same time, Admeld, which we acquired, is helping provide publishers control, flexibility, and more revenue opportunities. Our display platform helps direct response and brand marketers navigate the whole web. For brands, this quarter, we unveiled the Brand Activate Initiative, a series of measurement and planning solutions baked directly into our platform.
With our partners, we're building an online measurement for GRPs, or gross rating points, and a way to measure viewable impressions. Effectively, what we want to do is we want to drive more and more advertising dollars in the brand space, and this platform is going to be an effective way for us to be able to do that. Recently, in Cannes, at the big advertising festival, creative agencies loved Project Rebrief. This was one of our demos of the possibilities of how in modern digital marketing you can use multiple media formats to make advertising successful. That is quite a change from 2004 when our four-line text ads weren't quite as exciting. Another big bet that's part of our integrated solutions is YouTube. I think in 2007 it was when newspapers frequently said YouTube is groping for an effective business model.
I think we can declare we found our model. YouTube now unites the world through video, from the Human Rights Channel launched this quarter to a Pew study confirming YouTube as a major global news platform, and for the first time, YouTube will be powering NBC's live streaming of the Olympics in the U.S., while also live streaming the games in London to 64 territories around the world. Daily account signups have doubled year-over-year, and users are uploading over 72 hours of video every minute. This quarter, we released the new YouTube app for Android, helping users to find videos and follow channels from a mobile or tablet device. We believe YouTube is now a proven winner for the whole video ecosystem. Thousands of partners are making six figures, and we're proud to work with major record labels and Hollywood studios on this platform.
In fact, earlier in May, we threw an incredible digital upfront event, Brandcast, highlighting our YouTube programming partners. Slightly over 1,300 clients attended. Some of the world's biggest advertisers were there, and they're making significant commitments on YouTube, including people like Unilever, AT&T, and American Express. If you're counting, that's five successful acquisitions, well integrated and helping us succeed in the advertising space. The sixth is AdMob, which helps power our mobile ads both across Android and iOS and other mobile platforms in the future. AdMob was integrated this quarter into AdWords. This has further turbocharged our ability to provide in-app advertising. That's more than a million advertisers with 300,000 mobile apps and 350 million devices at their fingertips. The growth in the businesses with mobile websites is stunning. Last quarter, we rolled out GoMo, which is short for GoMobile.
That initiative was rolled out in eight new countries, including Germany, Japan, and Brazil. Mobile-friendly websites are vital for modern businesses and very important for our mobile search business. In less than one year, the number of advertisers with mobile sites has doubled. Another major upgrade to Google Analytics was made for mobile apps, and a new AdMob SDK for developers rounded out an awesome quarter. For us, mobile is like desktop was in 1999. Smart marketeers are getting great ROI, and we were developing native ad models that generate results for them. For example, we've had 15 million monthly calls for our click-to-call format exclusively available on mobile devices in the U.S. Let's talk about my second theme, the secret sauce of search advertising. This quarter showed why we're so optimistic about search's continued growth.
You know about some factors that drive search, the overall move to digital media, and new search ad formats. But I think we often underestimate one factor that you don't often read about: the amount of effort our product and engineering teams put into the quality and precision of our ads. And that just keeps getting better. This quarter, we made 72 quality improvements and launched greater auction transparency for search advertisers. Effectively, what this does, it improves the relevance of our ads. It's making it more useful to consumers. It drives better results for our partners, clients, and advertisers. And it helps improve monetization. Imagine if every single search ad was a perfect answer that drove a conversion for a customer. I think that's the objective that our teams are aiming for.
In Q2, our improvements included better triggering of Sitelinks and ads, an improved ad rotation system, better geographical targeting, expanded match for keyword variants, and a whole host of other improvements. As an example of benefits of these changes, the advertisers taking advantage of the new close variant feature and exact and phrase matching are seeing roughly a 3% increase in clicks on average. Let's talk about the third theme. Let's acknowledge where we are in our enterprise business. I think it's become clear for us that we have a serious, small but growing business, which is going to be a future growth engine for Google. I hope you read this week about a company who said competition was 50% more expensive than Google and not as cool. That company is now a $200,000 a year Google Apps customer.
Companies, schools, governments worldwide are moving to the cloud faster than ever. More than five million businesses have now gone Google worldwide, with traction among large organizations, even such as the U.S. Department of the Interior, Fairfax Media in Australia, et cetera. I think it's clear you can't fake a commitment to cloud computing, and we've invested to build and scale a business that has gone from upstart to upper crust. Thousands of businesses switch to Google Apps from our competitors every day. Recently, we've launched products like Google Drive, Google Maps Coordinate, as well as the ability to edit documents offline and on a whole range of mobile devices and tablets. That just shows you the pace of innovation that Google is bringing to the business technology.
With over one million active applicants on App Engine and the recent launch of Compute Engine, our cloud platform, that makes Google's infrastructure directly available to developers and businesses. Let's change gears. Let's talk about countries and how our performance was across the world. Across all products, growth in the Americas and Asia was steady relative to the first quarter. The U.S. and Canada remained strong. Southern Europe slowed slightly as it was hampered by poor macroeconomic and overall ad industry conditions, notably Spain. On the other hand, performance accelerated in Northern Europe driven by the U.K. Our clients span a full range of industries that are making the web work for their business. Let's take a few examples. Take the hotel and travel sector. In France, we worked with Accor to revamp and improve their search investment allocation across 23 countries.
In Denmark, top travel site Momondo shifted some of their TV budgets to YouTube and other Google branding solutions. We're particularly proud about our achievements in the automotive sector from Detroit to Bavaria. This quarter's highlights included a contract with Tesla and a marquee deal with Audi to embed Google Earth in all of their cars. In Canada, we partnered with Ford around online video content, and GM and Toyota are investing significantly in YouTube. Switching gears to our agency partners, they're leading the charge in the digital era. I think we have the best relationships with agencies around the world than we've ever had before, and we are being able to move those relationships to real partnerships that allow them to work with their customers to make the web work for them.
I'm particularly proud of the work this quarter with our agency partners, Starcom MediaVest Group, to develop a global joint account planning project across 50 top accounts. We launched a digital training curriculum covering Google products and digital trends, and we are able to train over 8,000 people. Those sectors are good examples. But our partnerships permeate all industries and across all countries. Spanish health insurer Sanitas made a major investment in search, and now it has become our most efficient channel for customer acquisition online, accounting for about 25%-30% of their new customers. In France, Danone is working with us on a global initiative across our display and YouTube products. So is U.S. pharmaceutical manufacturer Shire. Intel in China chose AdMob for a cross-platform campaign on Android and iOS because of the reach that AdMob provides them and the seamless solutions we offer.
And in Sweden, H&M is using Google+ Social Extensions for search advertising. Not only does it increase traffic, but it also gives them a large number of engaged followers. They've increased their click-through rate on AdWords because of that by an average of 22%. Let's talk briefly about marketing. Marketing is a key focus for our consumer products. And speaking about Google+, our marketing team continues to do a phenomenal job supporting our investments there. Our "That's the Plus" campaign is now in the U.S., U.K., Japan, and Germany, and is helping connect communities on Google+. Just this quarter, we organized Hangouts with diverse groups from Sir Richard Branson to the NBA to UEFA. As I mentioned, the Cannes Lions Festival. I'm particularly proud.
Not only are we providing great marketing solutions to our partners and our customers, our own marketing team received two Grand Prix awards: one for Project Rebrief, where we worked with Coca-Cola to take an old ad and make it relevant in the digital media space, and two for our UK Voice Search campaign. But not only that, they brought back 25 additional awards: five golds, eight silvers, 12 bronze, our own mini Olympics. That's our marketing team, showing that innovation permeates everything we do. I'll leave you with two final examples that show the diversity of Google's partnerships. In France, this quarter, we moved forward with a commercial relationship with SNE, which effectively represents French publishers, to put out-of-print books into Google Play for Android. This helps users more easily access this material and enables publishers to generate additional revenue for their content.
And second, from the sublime French literary tradition to the even more sublime Doodle for Google contest. Our U.S. winner was Wisconsin second grader Dylan Hoffman, who in May beat a record 114,000 school children from 48 states. His school earned a $50,000 technology grant, and Dylan's Doodle graced the Google homepage for the day. I think Dylan's not listening to this call, but if he is, he's had a pretty successful second quarter as well. So congratulations and thanks to Dylan, his family, and his school from Googlers all around the world. And thanks to all the Googlers that allowed us to have such a wonderful quarter. I'm going to hand over to Susan now.
Susan Wojcicki (SVP Advertising)
Thanks, Nikesh. We also had a busy and productive second quarter for all of our consumer products. Let me start with search. Our goal is to deliver technology that just works. Larry has described the perfect search engine as something that understands exactly what you mean and gives you back exactly what you want. We've made a start towards more intelligent search thanks to the Knowledge Graph, which understands real-world things, their defining characteristics, and their connections to one another. Our Knowledge Graph currently includes more than 500 million things, people, and places, more than 3.5 billion facts about them. This includes entities like landmarks, celebrities, sports teams, works of art, and a lot more. By summarizing related content all in one place, people not only find what they're looking for, but they also make unexpected discoveries.
For example, I was making plans this weekend, so I searched for the movie The Dark Knight Rises. From the Knowledge Graph results that showed up on the right-hand side of my search results, I was able to find out that the movie is coming out tomorrow, some information about the film, and which actors star in it. Since I didn't recognize all of the actors, I clicked on the photos displayed, and I was able to see biographical information as well as other movies they had been in. The Knowledge Graph results also showed me related movies that other people had searched for. I discovered a number of movies, including movies scheduled to come out later this year and next year, that I also want to see. The Knowledge Graph also works great on mobile.
If you voice search for Julia Roberts movies on your phone, you will see a list of her latest films in the search results, and if you're running an Android device with Jelly Bean, our latest Android release, Google will actually say the list of movies back to you, powered by the Knowledge Graph, in addition to giving you the traditional search results. Also, on Android, we introduced Google Now, a feature that intelligently brings you the right information at the right time just before you even ask for it. For example, one morning last week, Google Now told me that my commute would take 15 minutes longer than normal based on current traffic. All my excuses for being late are now gone. I didn't have to do anything. The information just showed up as a notification.
Google Now also shows me other things I may care about, like weather, driving directions to my next appointment, cool places nearby, flight updates, and scores for my favorite sports teams. As you can see, we're serious about providing more intelligent results. We're moving beyond a search engine that just matches strings of words to one that understands the people, the world, the way people do. Just as the Knowledge Graph connects real-world things, Google+ is a social spine that is starting to connect everything across Google. With the new Google+ Local feature accessible from desktop and mobile on Maps, Search, and Google+, users can find and share nearly 100 million places and local businesses, like restaurants and museums. Users can make decisions about where they want to go based on Zagat scores, summaries, and reviews from friends and people they trust who are on Google+.
Once they've decided where to go, they can use a new Events tab in Google+ to plan their activity and to share photos and comments before, during, and after the event. We've also redesigned the Google+ app for both Android and iOS, and we recently announced a Google+ experience for Android tablets and the iPad. More users are now accessing Google+ from mobile devices than from desktop. To date, 250 million users have upgraded to Google+, meaning they've signed up for Google+ and created a profile. We're excited about this momentum, but we know it's still early days as people build a community on Google+. Moving on to shopping, this is another area where we're helping people more quickly turn their intentions into actions. In May, we announced a new commercial model built on Product Listing Ads.
It's called Google Shopping, and our transition to the new model will be complete in the fall in the U.S. By having a commercial relationship with merchants, we believe consumers will see more reliable and up-to-date information about prices and product availability, and merchants should receive higher quality traffic to their sites. We're also experimenting with new commercial formats on Google.com that have product summaries and larger product images. These new formats are clearly labeled sponsors, and they help shoppers more easily find and compare different products or refine their searches by brand or product type. Try searching for camping tents to see an example of these new results. Users can find special offers and deals with Google Shopping and can shop with confidence when they see a Google Trusted Store badge on a retailer's site.
On the platform side, we had a lot of key announcements and launches at our Google I/O Developer Conference. Let me give a quick summary of the highlights. We announced one million new Android devices are being activated each day, with more than 400 million devices now activated worldwide. We showed off Jelly Bean, our latest version of Android, and the Nexus 7, our tablet that's built for Google Play. More than 20 billion apps have been downloaded from Google Play. We announced that Chrome has 310 million users worldwide, which is up from 160 million last May. We brought Chrome for Android out of beta, and we introduced Chrome for iOS, which became the most popular free app in the Apple App Store within hours of its availability.
We launched our new infrastructure service product called Google Compute Engine, which lets developers and businesses run Linux virtual machines on the same infrastructure that powers Google. Google Documents became editable offline, and we announced Google Drive for iOS. Drive is a place to create, share, and store all your content. It's available even without an internet connection, and it functions across Windows, Mac, Android, Chrome OS, and now iOS. We released 3D cityscapes in Google Earth for mobile, announced that travelers with an Android device can now access offline maps of more than 150 countries, and expanded our Street View feature in Google Maps to provide panoramic imagery in more than 3,000 cities across 40 countries.
Then, of course, there was a surprise demo of Google Glass with a live video hangout with skydivers, wearing Google Glass and jumping out of an airship nearly a mile above downtown San Francisco, and then landing on the roof of the I/O Conference Center. To see this demo for yourself, you can search on Project Glass Demo on YouTube. I definitely recommend this video. Thanks all for your time, and now back to Patrick.
Patrick Pichette (SVP and CFO)
Thank you, Susan. I'm never going to jump off of one of these balloon planes. So it was an absolutely unbelievable experience, and thanks for Sergey's innovation on that one. One more thing just before we turn to Q&A, just a couple of announcements. One, we have just launched our Google+ Investor Relations page, which is designed really to be a great source for Google product updates and company news relevant to investors and shareholders. So please be sure to check it out and let the IR team know what you think of it. So that's just launched about an hour ago. And as we're about to open the lines, I just also want to invite David Drummond, our Chief Legal Officer. He'll be joining Nikesh, Susan, and myself to answer any questions that you may have. So welcome, David, to the call as well.
We're going to turn on now, Jamie, to the Q&A section. Let us know how you want to operate.
Operator (participant)
Thank you, sir. If you would like to ask a question at this time, please signal by pressing the star key followed by the digit one on your telephone keypad. If you are using a speakerphone today, please make sure your mute function has been turned off or pick up your handset to ensure that our equipment can hear your signal. If you do find that your question has already been asked and answered, you may remove yourself from queue by pressing star two. Again, that is star one for any questions at this time. And we'll take our first question from Mark Mahaney with Citi.
Mark Mahaney (Analyst)
Great. Thanks. Two questions, please. First, on Motorola, the comment at the time of the acquisition was that it would be accretive. Do you still feel that that asset can be accretive? Any thoughts you would give us as to how you would make what has been pretty consistently a loss-leading asset? That's Motorola Mobility. How you make that accretive. And then a product question on search. And what do you find in terms of the appetite or the interest in voice search? Google's had a voice search capability for a while, but as you've noticed over time, are people more interested in using that, less the quality of that versus whatever regular search? How interesting do you think that is as a growth area for Google in the future of voice search? Thank you.
Patrick Pichette (SVP and CFO)
I'll just answer the Motorola question and then let Susan jump in on the search. On the question of Motorola, look, we're totally excited about this opportunity that we have at Motorola, and our management team has been there only a few weeks. Clearly, everybody should expect some changes at Motorola that we have already talked about in the public domain. And when we said, you know, Dennis and the management team is there resetting and retooling it, but we have nothing really to announce right now. I think, you know, we have to let them do their work, but I can tell you there's a palpable excitement at MMI for all the employees, but also for the plan. So I just want to come back, Mark, to your point on accounting.
If you actually took out the accounting issues that were related to closing the transaction, whether it be the Stub Period, the amortization of intangibles, and some of the adjustments that were related to the acquisition, in fact, on the mobile side, they had a pretty stable and good quarter. There's a lot of accounting noise in the data. So I think it's going to take one or two quarters before all that noise comes out. Susan, do you want to comment on the Voice Search?
Susan Wojcicki (SVP Advertising)
Sure. Yeah, so I mean, voice search has been an area that Google has been investing in for a number of years. We believe we have really good technology here because we've invested for so long on this. And you know, as I mentioned when I talked beforehand, you know, now with the Jelly Bean release, we have the ability not only to ask the question, but also to have the answers given back to you. And so I definitely recommend that you test that out. It is very powerful, and we think, you know, in the right circumstances, users will want to, some users will want to type, and some users will want to have voice. And so in the circumstances where they do, we've developed a really amazing technology that is leading edge on that.
Mark Mahaney (Analyst)
Thank you, Susan. Thank you, Patrick.
Patrick Pichette (SVP and CFO)
Thanks for your question. Let's go to the next question, please.
Operator (participant)
We'll take our next question from Spencer Wang with Credit Suisse.
Mark Mahaney (Analyst)
Thanks. I guess one question in two parts for Patrick on Motorola. You talked a little bit about some of the accounting noise, Patrick, and it doesn't sound like it's finalized yet, but I was wondering if you could give us a rough sense of the purchase price allocation in terms of the hard assets versus goodwill versus other intangibles so we can sort through some of that noise? And the second part is I was wondering if you could just talk a little bit about the Motorola home business in terms of how that fits in if you guys consider that strategic? Thanks.
Patrick Pichette (SVP and CFO)
Okay, so on the details of the purchase price, we haven't given in terms of the asset, and obviously, the IR team can follow up with you on that, but I think in our disclosures, the press release and the like, you will see, like, for example, intangibles was 30-some million in the case of Motorola and 32, I believe, for Google just on intangibles, so it gives you a sense of the numbers for the stub period. As it relates to the home business, I mean, again, a bit of the same story that I told Mark prior, which is we've just got into the place, and we are in the process of evaluating every business of MMI and every division of it, so it's a little bit too early for us to comment on big changes right now.
So I just need a bit of patience for us to complete our homework as we've been there just for a few weeks.
Mark Mahaney (Analyst)
Sure. Thanks a lot, Patrick.
Patrick Pichette (SVP and CFO)
Thanks. Thanks, Spencer. Let's go to the next question, please.
Operator (participant)
We'll take our next question from Carlos Kirjner with Sanford C. Bernstein.
Mark Mahaney (Analyst)
Hi. Thanks for taking my questions. I have two questions, one on mobile and one on YouTube. On mobile, have you conducted any studies on the impact of mobile adoption on search query demand by end users? And do you have a perspective on what portion of mobile queries are incremental versus cannibalistic for handsets and tablets? And on YouTube, I think one or two quarters ago, Nikesh referred to Google Analytics as the unsung hero of the business. Thinking about YouTube brand advertisers, how do you give them visibility into brand advertising ROI in YouTube? And do you think you'll be able to do that to get the dollars to flow and overcome the obvious challenges that you may have there?
Patrick Pichette (SVP and CFO)
So Nikesh should answer the second question. Susan, on cannibalization of mobile versus desktop.
Susan Wojcicki (SVP Advertising)
Yeah, definitely. I mean, we've spent a lot of time looking at that to try to understand how those two different types of devices and how those searches interact with each other. And, you know, the analysis is very complicated, but I will say we believe that mobile searches are mostly incremental. For example, on weekends when users are out and about, we usually see a rise in mobile activity. And then when users come back on Monday, we see a rise of desktop. So although it's not a one-for-one, we do believe that they are mostly incremental.
Mark Mahaney (Analyst)
Does it vary, Susan, between handsets and tablets?
Susan Wojcicki (SVP Advertising)
In terms of queries?
Mark Mahaney (Analyst)
Or the incremental versus cannibalistic?
Susan Wojcicki (SVP Advertising)
I mean, I think we're still in the process of trying to run our analysis and try to figure that out. I mean, I think the thing that handsets and tablets have in common is they're both on the go, and people are willing to take them, although people use tablets certainly in the office environment as well. So I would say we're still doing the analysis on that.
Mark Mahaney (Analyst)
Okay.
Patrick Pichette (SVP and CFO)
Yeah. So we have a clear view on the handsets and on tablets. There's more analysis to be done. On YouTube, Nikesh?
Nikesh Arora (SVP and Chief Business Officer)
Hi. Yeah. So on YouTube, there are two different issues, right? If you're talking about performance advertisers, they're able to look at ROI on YouTube versus other performance media in the online space. It gets more interesting when you start talking about brand because brand is not just about the online space. Brand is also about the television space. And we've done some very exciting things with single-source panels where we worked in Germany with thousands of users and tried to look at advertising effectiveness and efficiency, not just on YouTube and online video, but also compared that to television. And we're incorporating that into our analytics and our sales pitches to show how the ROI is available on YouTube.
We've noticed not only do you get higher ROI, but you also get higher reach and higher frequency capabilities on YouTube because you are looking at users on a very large online platform.
Patrick Pichette (SVP and CFO)
Thanks for your question, Carlos.
Mark Mahaney (Analyst)
Thank you.
Patrick Pichette (SVP and CFO)
Let's jump to the next one, please, Jamie.
Operator (participant)
We'll take our next question from Ben Schachter with Macquarie.
Ben Schachter (Analyst)
Just a few questions. I was wondering first if you can update us on Larry's health situation? And then I know it's early, but can you update us on the usage of Chrome for iOS devices and any comments you can give to help us understand the importance of that product and also how you plan to market it? And then also, historically, you've talked about self-driving cars and some of these other projects as relatively low investment, high media profile projects. But it seems with Google Glass and some others, they're taking more management time and focus. Should we be thinking about those differently? Thanks.
Patrick Pichette (SVP and CFO)
Okay. So why don't I let Nikesh talk about Larry's situation? Susan can talk about the second question on iOS, Chrome, and then I'll just take the third one. So Nikesh?
Nikesh Arora (SVP and Chief Business Officer)
Yeah. I mean, there is no more new news on Larry. Larry has lost his voice, and we said that means he cannot do any public speaking engagements at the time, including today's earnings call. But he continues to run the company, and he is here and involved in all the strategic business decisions that we're making.
Patrick Pichette (SVP and CFO)
Susan?
Susan Wojcicki (SVP Advertising)
Yeah. And on Chrome for the iOS device, from the moment we launched, it was very popular in the App Store. We've seen it as one of the top apps. And it's something we've invested for many years on Chrome. It's got a lot of really compelling features from security being very fast. And we continue to expect to see growth just because of the users using it for the different features that make it a really great product. From the other things, the self-driving cars and Google Glass, I mean, those continue to be projects that, from a headcount perspective, are small. We've talked about them being, they're small, but they have the potential to be very big.
I think they are also projects that we sort of think about them as moonshots a lot of times, like projects that we think can have really amazing capabilities, but again, and they get the company excited. But in terms of actual resources, it's a very small number.
Patrick Pichette (SVP and CFO)
Yeah. The fact that Sergey is actually leading the Glass project doesn't change any of the strategy. So from that perspective, it's just very exciting, and it's fun to share it with people when we have such exciting demos. But I wouldn't change any of the strategy in terms of the real focus of management and our capital intensity.
Ben Schachter (Analyst)
Thanks.
Patrick Pichette (SVP and CFO)
Thanks, Ben. Let's go to our next question, please.
Operator (participant)
We'll go next to Scott Devitt with Morgan Stanley.
Scott Devitt (Analyst)
Thanks for taking my questions. I had two, please. You've previously referenced the talent war last year increased cash compensation by 10%. I was just wondering, given the transition of a number of companies that you compete with for talent into the public markets, could you just give an updated view on the cost and availability of talent in the Valley? And then secondly, on a last 12-month basis, Google's generated $12.5 billion in unlevered free cash. So you now have an 8% unlevered free cash yield. And you're generating cash at a run rate that equates to about 30% of the current cash position. So I was wondering if you could just talk a bit about the way that you're currently thinking about capital allocation or specifically a share repurchase. Thanks.
Patrick Pichette (SVP and CFO)
Okay. So let me start with the second one first. We continue, and I know that I sound a bit like a broken record on this, but on a very regular basis, we actually debated with our board, and our cash position is really a strategic asset to us given all of the innovation that's happening and all of the options that are available to us. I mean, it has been such, and you just take Motorola, which we just closed. I mean, it was a real strategic asset to us to actually be able to pounce. So we haven't changed our position in terms of share repurchases or dividends or any of the others for the time being, which does not mean we don't evaluate. We do take a good look at it. We just think that it continues to be a strategic asset for us.
That's why we haven't changed our position on that yet. In the case of the talent, I think that the Valley continues to be hot. I mean, it's a hotbed of innovation. There's a lot of need for that talent, especially at the very high, the engineering front. We're delighted by our strategy. I mean, we continue to see really benchmark levels for our retention purposes, and we continue to attract the very best talent. For us, it is an absolute strategic asset, again, for the company. I mean, Googlers, the engineers that are here and the salespeople, they really make a huge difference to the velocity of the company. The Valley has not changed. Despite everything else that's going on in the world out there, the Valley continues to be absolutely hot. We're so pleased to have seen our strategy pay out so well.
So thanks for your question, Scott. Very good question. Let's go to our next question, please, Jamie.
Operator (participant)
We'll go next to Heather Bellini with Goldman Sachs.
Heather Bellini (Partner and Managing Director)
Hi. Great. Thank you. I have two questions. First, what are you seeing in terms of mobile CPC trends, and how do you see these trends playing out over the course of the next 12 months? And then the second question is, with the Nexus 7 on the market, can you talk a little bit about your plans to accelerate content acquisition, in particular in video and books? Thank you.
Patrick Pichette (SVP and CFO)
I think Nikesh is perfectly suited for both.
Nikesh Arora (SVP and Chief Business Officer)
Hi, Heather. Thank you for your question. Well, I think the good news is that we're seeing phenomenal growth in the mobile queries across the board, whether it's tablets, whether it's mobile phones, whether it's geographical, or wherever. We are seeing phenomenal amounts of mobile queries across the board. I think, as I said, mobile is right now where search was in 1999. We had a situation where Susan's team was doing phenomenal product innovation to keep driving more and more efficiency for the advertisers. We were working with advertisers to get them to get better landing pages, better sites, get them to understand truly the opportunities in the mobile space. For example, you can make phone calls. So we have a product called Click-to-Call. Now, the search takes on a whole different meaning because there's a better conversion when people actually click and make phone calls.
So we are seeing mobile CPCs are healthy, and we expect them in the long term that they will continue to be healthy and sort of follow the trajectory that search has followed: more inventory, more effectiveness, more ROI for the advertisers, better pricing in the market. In terms of your second question, with Nexus 7, I think we have made tremendous amounts of headway in the content space. We have a lot, lot of content on Google Play. We're working very closely with the music industry, with Hollywood studios, etc., to get more and more content on the platforms. And I think given that there are models out there where other people are offering content on the platforms, it is becoming pretty standard that you can have the ability to offer content to the end user. And we are making tremendous amounts of progress across the board.
Patrick Pichette (SVP and CFO)
Thanks for your question, Heather. Let's go to our next question, please.
Operator (participant)
We'll take our next question from Doug Anmuth with JPMorgan.
Doug Anmuth (Analyst)
Great. Thanks for taking the question. I just wanted to ask two things. Just first, following up on the mobile CPC question, can you just give us some color on what percentage of advertisers are bidding on smartphones and tablets in addition to the desktop? And then secondly, Patrick, can you also just help us understand the accounting around the Nexus 7 tablet and how we should be thinking about that on a gross versus net basis and the impact it may have going forward? Thanks.
Patrick Pichette (SVP and CFO)
Okay, so I'll let Nikesh cover the CPC, and then I'll circle back after.
Nikesh Arora (SVP and Chief Business Officer)
Yeah. I think I already said that in my prepared remarks that we have over a million advertisers working with us in mobile advertising. And we have over 300,000 mobile apps. So I think it's a substantive number in terms of the number of advertisers who are involved in the mobile space. And I think usually people who get involved in the mobile space don't distinguish between smartphones and tablets. They actually want to find the most effective ROI they can get, and they want to capture as many queries as you get on either device.
Patrick, did you want to ask something?
Patrick Pichette (SVP and CFO)
No. The issue for the Nexus 7, I mean, we have two sets of accounting. Obviously, it's distributed on its own by others. You can get it at Best Buy and otherwise. When you use the Play Store to actually buy it, we book the revenue, and then we book the cost as well. And the cost will be another cost of revenue rather than CAC or TAC because they're neither of them. And that's how the accounting is set.
Susan Wojcicki (SVP Advertising)
Yeah. And this is Susan. Just one more thing I would add, Doug, on your question about the mobile CPCs and the percentage that are bidding. A lot of our campaign structures are set up so that when an advertiser participates and they bid, they can set up one campaign, and it can run across everything. And we adjust those prices dynamically for them. It's called Smart Pricing. And so some advertisers do bid specifically on mobile, and then some advertisers have bundled campaigns, and we adjust those prices. So it's not just advertisers that are bidding only for mobile that are participating in mobile.
Patrick Pichette (SVP and CFO)
Thanks for your question, Doug. Let's go to the next question, please.
Operator (participant)
We'll go next to Justin Post with Merrill Lynch.
Justin Post (Analyst)
Great. When you look at your international results, FX, they actually were stable or even accelerated. Yet we're hearing a lot of issues over there. Can you talk about geographic mix, what countries are doing well, or vertical mix, and any product enhancements or new products you've launched that are really helping your revenue growth there? And then secondly, TAC to distribution partners was up about $40 million quarter over quarter and continues to be a bigger chunk of your Google website revenues. What drove the quarter over quarter increase? Was that mostly mobile, or were there other factors? Thank you.
Patrick Pichette (SVP and CFO)
So let me jump on TAC and then let Nikesh answer the first question. So TAC, it's really a mix, right? Obviously, TAC reflects a mix of different distribution methods that include toolbars, Chrome distribution, mobile distribution, and also, obviously, the AFS business as well. So if you look at our revenue mix between Google properties and network, network was a tad stronger, so that will drive TAC as well. And then mobile is also one of these contributing factors. So we don't break down all the specifics, but it's not only mobile. I mean, we have a number of factors that are at play here. On the first question, I'll let Nikesh circle back to you.
Nikesh Arora (SVP and Chief Business Officer)
Yeah, and I alluded to some of this in the prepared remarks. I think, as I said, growth in the Americas and Asia has been steady this quarter. The US and Canada have stayed strong, and as I mentioned, as you said, there have been some issues internationally. Southern Europe, we saw a slight dip as we think it is hampered both by pure macroeconomic conditions and overall ad industry concerns. Spain was a notable sort of low light or high light, depending on how you look at it in that conversation. On the other hand, performance accelerated for us in Northern Europe, driven by the UK, and the UK has been a little depressed over the last few quarters, so it is finally coming back, and so we're seeing strength there again.
In terms of your question around the sectors, I'd say travel has been strong pretty much across the board in the U.S. and the U.K. and around the world. Auto was strong in the U.S. for us. Healthcare has been strong in the U.K. And generally, across the world, we've seen strong sort of performance, both in finance and local. And we are seeing more and more sort of excitement and enthusiasm in sectors like CPG and entertainment given the shift to brand. But I'd say this is a snapshot in time, and these things change quarter over quarter.
Justin Post (Analyst)
Thank you.
Patrick Pichette (SVP and CFO)
Thanks, Justin. Jamie, let's go to our next call, please.
Operator (participant)
We'll go next to Anthony DiClemente with Barclays.
Anthony DiClemente (Analyst)
Hi. Thanks. One, I think for Susan, just if you can help us with the order of the magnitude of the drivers of the divergence that we continue to see between CPCs and volume. I think in the past you've talked about, of course, mobile is one of those drivers, but then FX, we have a sense of that, product mix, emerging markets, and ad quality changes all driving that. So I was wondering if you guys could give us an order of magnitude of how important each of those few drivers were in the quarter and then how we should think about those trending going forward. If we should expect that divergence to normalize, or should we actually expect it to continue to diverge? That'd be helpful. Thank you very much.
Patrick Pichette (SVP and CFO)
Susan, you want to give some comments on it, or Nikesh? Go Nikesh.
Nikesh Arora (SVP and Chief Business Officer)
I think I have the CPC pattern this quarter. You can't have a good earnings call if you don't talk about CPC. So here we go. CPC is an important metric for us. But if you take that independently, it's not necessarily a reflection of the fundamental health of our business. This quarter, I'd say the biggest impact in CPC was actually FX. We have four or five factors that impact CPC, but the biggest impact this quarter was FX. We have clearly an impact of mobile versus tablet versus desktop. We have an impact of emerging versus developed markets and what's happening from a macroeconomic point of view, as we talked about. We have an impact of Google.com versus network. So as you see TAC or you see network playing a bigger role, it impacts CPC. And finally, ads quality changes also impact CPC.
But I'd say this quarter, the impact has been felt because of FX. But from a positive perspective, we see anytime there's a change in CPC, which is more attractive for the advertiser that allows the advertiser to get a better ROI. So for us, it's an opportunity for the advertiser.
Patrick Pichette (SVP and CFO)
Yeah. It's important to note that the 16%. There was a big chunk of it that was CPC versus last quarter. I mean, as the euro kind of went down 9% year-over-year, I mean, it obviously makes a big difference. So thanks for your question.
Anthony DiClemente (Analyst)
Okay. And that's the biggest one. Thank you.
Patrick Pichette (SVP and CFO)
Cheers. Let's go to the next question, please, Jamie.
Operator (participant)
We'll take our next question from Ken Sena with Evercore Partners.
Ken Sena (Analyst)
Hi. Thank you. Can you maybe talk a little bit more about the offers business, and do you feel as strongly about that business as you did in the past, and maybe how that business actually will come into play with Google+ or payments or Maps? Thank you.
Susan Wojcicki (SVP Advertising)
Yeah. Hi, Ken. So yeah, offers continue to be an area that we're investing in. I mean, we think that there's a lot of things that are really important about offers, the way it's a local business. It works with both small and large business. There's a lot of user interest in it. So it is an area that we are continuing to invest in. We are also, as we continue to develop it, our business model continues to evolve. And for example, we're working with a lot of the different offers and providing distribution for them in addition to generating our own offers with our own sales team. But it continues to be an important area for us, and we will continue to invest in it in the cities that we are currently operating in.
Ken Sena (Analyst)
Thank you.
Susan Wojcicki (SVP Advertising)
Sure. Thank you, Ken.
Patrick Pichette (SVP and CFO)
Jamie, our next question, please.
Operator (participant)
We'll take our next question from Ron Josey with ThinkEquity.
Ron Josey (Analyst)
Great. Thanks for taking my question. Going back to mobile and the opportunity there, Nikesh, I thought it might be interesting if you could talk a little bit about perhaps what you've seen in terms of the campaigns. If there's been an acceleration now that AdMob is fully integrated in AdWords, knowing that there's over a million advertisers and 300,000 apps, wondering if there's been acceleration since that's happened. Thank you.
Nikesh Arora (SVP and Chief Business Officer)
Hi. Thanks for your question. I think, as I said, we are seeing a phenomenal amount of growth in the mobile query space, and it's a consequence of more devices. It's a consequence of more adoption of tablets around the world. It's also a consequence of people getting more and more comfortable with their devices and using them more often, so with the number of questions you asked around the AdMob stuff, AdMob just got completed in early June, so it's a bit early to say we're seeing acceleration, but generally, our performance throughout that integration has been very strong, and what we've done about six months ago is we took all of our sales efforts, and we took our specialist mobile salespeople, and we had them train all of our sales forces around the world.
So that, in fact, has even contributed more than just that integration part. But we think the integration is just going to turbocharge that effort and hopefully continue to help us drive mobile. I mean, mobile is going to be here for a while. I think it's a fact of life for us now. So mobile is sort of becoming as core as desktop search was. So we're making sure that all of our salespeople around the world are fully equipped and working with every advertiser, not just the million, to make sure that people can see ROI in both mobile and desktop simultaneously.
Ron Josey (Analyst)
Great. Thank you.
Patrick Pichette (SVP and CFO)
Thanks, Ron. Let's go to our next question, please.
Operator (participant)
We'll go next to Jason Maynard with Wells Fargo.
Jason Maynard (Analyst)
Hey, good afternoon. I have one question just on the shift to mobile and specifically around this will be both Nexus as well as Motorola. How important do you think it is for ultimate mobile monetization to actually control the whole experience on the device? And given that you've got sort of all sorts of different competitors, some who subsidize evidently, some are obviously selling full-price hardware-software combos, what do you think the right mix is for Google, and when do you think you'll sort of sort this out and be a little bit more declarative in the market with your intentions? Thanks.
Nikesh Arora (SVP and Chief Business Officer)
I think this is Nikesh again, Jason. Thanks again for your question. As I said, mobile is very, very important. I think it's better to go back and think about what's happening in the marketplace. We've said we're very committed to mobile. It's evident in our commitment to Android and our ecosystem as well as our Motorola acquisition. So we believe that mobile is very and very important and critical to the future. Now, I know it seems a little complicated when you look at the different competitors and how you talked about subsidies, etc. We simplify that by focusing on how do we provide the best experience to the user. Now, providing the best experience to the user is effectively working really hard with Andy Rubin's team on Android, making sure he's creating the best experience for the end user.
And in that process, he works with the best OEMs in the marketplace to make sure that the combination of hardware and software allows for the best experience to be delivered. And I think for us, what's important is to get that experience delivered. And we will work with whatever industry models are out there. Either we work directly with operators to try and make sure that happens in the hands of the end user. And more often than not, we work with OEMs to see how we can get the best-of-breed experience in the hands of the end user. And I think that's what we're going to focus on. So I think that's quite declarative in terms of our intentions.
Patrick Pichette (SVP and CFO)
Yeah. I mean, just to close, open is really important to Google. And in that context, you see our strategy is very focused on end users and being open. And we're going to get a lot of benefit that we already have and continue to get a lot of benefit out of that. So it's a complex question, though, Jason. There's no doubt about it. Thank you so much for your question. Let's go to our next question, please.
Operator (participant)
We'll take our next question from Lloyd Walmsley with Deutsche Bank.
Lloyd Walmsley (Analyst)
Thanks. Wondering if you could tell us a little bit about the rollout of the shift to paid inclusion for Google Shopping and when you expect it to be fully rolled out and kind of what you're seeing today in terms of paid clicks and CPCs now that some of the shopping links have been moved higher in results, and where do you think CPCs there can go relative to just core paid search?
Patrick Pichette (SVP and CFO)
I'll let Susan answer this one. Susan?
Susan Wojcicki (SVP Advertising)
Yeah. So, Lloyd, so we made this decision to move to a commercial model because we felt that ultimately this would drive a better experience for users and having more up-to-date information, more accurate price, inventory availability. And so we are in the process of rolling that out. We think it will be rolled out. We expect probably completed around the Q4 time frame. And we are working really hard with all the merchants to get them all on board. And again, we think this is actually really good for both the merchants and the users. We actually don't refer to this as paid inclusion because that actually is a term from the people who have been in the industry for a really long time of meaning putting in paid things into the search results in a non-marked way. And we're very, very clear when we show this.
We do mark everything very clearly as sponsored. And again, we believe that actually moving to this model is good for both users and for the merchants. And we're really looking forward to this transition.
Lloyd Walmsley (Analyst)
Thank you.
Susan Wojcicki (SVP Advertising)
Thanks, Lloyd.
Patrick Pichette (SVP and CFO)
Thank you.
For your question. Very important piece for us. Let's go to our next question, please.
Operator (participant)
We'll take our next question from Kevin Kopelman with Cowen & Company.
Kevin Kopelman (Analyst)
Hi. Thanks. Could you give us a sense of how big your mobile search queries are as a percentage of total search queries? And also on Motorola, I know you're not giving us a business update, but could you give us what the Android unit growth was in the quarter on a pro forma basis? Thanks.
Patrick Pichette (SVP and CFO)
On the last one, on the mobile side, the non-home side, it's all Android. On the search query splits, we don't actually provide the details. We provide the geographic split, but we don't give the details of the other ones. So I'm sorry, Kevin, if we can't be more helpful in the granular details on this issue. Let's see. We have time for one more question. Let's jump on one last question. Jamie?
Operator (participant)
Thank you, sir. We'll take our last question from Jason Helfstein with Oppenheimer.
Jason Helfstein (Analyst)
Thanks for taking my question. I'll ask it just two. One, can you just talk about the growth of Google+ member growth? Are you happy? I think you alluded to how that's going. What can you do to drive faster member growth? And is that kind of part of the strategy, or do you just let it organically evolve? So kind of a push versus, I guess, a pull strategy there. And then second, can you give us a breakdown of depreciation between Motorola and MMI for the quarter? Thanks.
Patrick Pichette (SVP and CFO)
In the segmented reporting, you'll find that information. After the call, this is for your second question, Jason, on the issue of depreciation. I think that the team can circle back with you and give you the split because we do the segmented reporting on the first question, which is about Google growth and our success there. Why don't I let Susan cover that one?
Susan Wojcicki (SVP Advertising)
Sure. Yeah. So overall, we've been really pleased with the growth that we've seen. We talked about the 250 million accounts that we have, Google+ accounts, and I do think it's also really important to remember that Google+ just celebrated its one-year anniversary. We actually celebrated that at I/O, so we see the Google+ account growth as going really well. We think that one of the most important things is that when you have a Google+ account, you have the ability to share. We've talked about Google+ being the social spine across all of our products, the ability to make all of our products better, not just the stream, which is an important part, but also, for example, your search experience.
So that if I have a friend, a friend went to a hotel, and plus one that hotel, if I'm going to that same location, I would be able to see that information at the time that I'm doing that search. And so we have many, many use cases where we think being part of Google+ will be a better experience. And so we're working across the board to make sure that our products are integrated. We have a number of integrations across our products. Probably local was the most significant one that we did this quarter. And we find that having those integrations by making the products better also drives more usage of Google+. So yeah. So thank you, Jason. That was an important question.
Jason Helfstein (Analyst)
Thank you.
Patrick Pichette (SVP and CFO)
And with that, we're at 9:00 A.M. We got to run. I just want to do a couple of things. One is to thank Nikesh and Susan as well as David for joining us for the call and Q&A. Also, thank all our Googlers. I mean, these last 90 days and the great results that we're posting now and the beginning of the collaboration and integration of Motorola, all these things are possible because our Googlers do phenomenal jobs every single day. So I want to thank everybody. And then as I close, remember, go and take a look at our Google+ website for investor relations. And I think you'll find it pretty interesting. So with that, Jamie, I'll let you close the call. And I wish everybody a happy summer.
Operator (participant)
Thank you, sir. That does conclude today's conference, and we do appreciate everyone's participation.