January 24, 2013
Google surpassed analysts expectations this week by announcing revenues of $14.42 billion in the fourth quarter — a 36 percent increase over 2011 — hitting more than $50 billion in revenues for the first time.
“We ended 2012 with a strong quarter,” said Google CEO Larry Page in a statement. “Not a bad achievement in just a decade-and-a-half. In today’s multi-screen world we face tremendous opportunities as a technology company focused on user benefit. It’s an incredibly exciting time to be at Google.”
Google made $50.18 billion in 2012, $12.27 billion more than 2011’s revenues of $37.91 billion.
The search engine reported a net income of $3.57 billion, up from $3.13 billion in the fourth quarter of 2011. Generally accepted accounting principles (GAAP) net income including net loss from discontinued operations in the fourth quarter of 2012 was $2.89 billion, compared to $2.71 billion in the fourth quarter of 2011. Non-GAAP net income in the fourth quarter of 2012 was $3.57 billion, compared to $3.13 billion in the fourth quarter of 2011.
Google’s advertising and other revenues were $12.91 billion, or 89 percent of consolidated revenues, in the fourth quarter — a 22 percent hike over the same quarter in 2011 with revenues of $10.58 billion.
To break it down, Google-owned sites generated revenues of $8.64 billion — 67 percent of total Google fourth-quarter revenues up from $7.29 billion the previous year.
Google’s partner sites, meanwhile, generated revenues of $3.44 billion — 27 percent of fourth-quarter revenues, a 19 percent increase over 2011’s revenues of $2.88 billion.
Other revenues from Google totaled $829 million— six percent of revenues in the fourth quarter, skyrocketing 102 percent over 2011’s $410 million.
Google had warned analysts before releasing its fourth quarter report that the sale of Motorola Home would impact its bottom line.
“In short, financial results from Motorola Home will be presented as a separate line item in our 2012 consolidated statements of income,” vice-president, treasurer and chief accountant Brent Callinicos wrote in a blog post. “While this is a standard accounting treatment, people who follow our company may not be fully aware of how it impacts our financial reporting. For example, as of this writing, a majority of Wall Street analysts who cover Google have not reflected the Home business as discontinued operations in their estimates.”
Google’s revenues would have been almost $1 billion higher had Motorola Home been included in its report, the company said. Revenue would have rung up to $15.24 billion.
Analysts predicted Google would earn $10.49 a share on $12.3 billion in revenue, a poll done by Thomson Reuters indicated.
Other Q4 Highlights:
Paid Clicks — Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our Network members, increased approximately 24 percent over the fourth quarter of 2011 and increased approximately nine percent over the third quarter of 2012.
Cost-Per-Click —Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our Network members, decreased approximately six percent over the fourth quarter of 2011 and increased approximately two percent over the third quarter of 2012.
Motorola Mobile Revenues (hardware and other) — Motorola Mobile revenues were $1.51 billion, or 11 percent of consolidated revenues in the fourth quarter of 2012.