Google Reports $14.42 Billion In Q4 Revenue

Posted Jan 24, 2013

This week Google reported their Q4 revenues.  They hit around $14.42 billion in revenue for the fourth quarter of 2012, which is up 36% from the previous year.  This means that Google has had their first $50 billion year.  “Not a bad achievement in just a decade and a half,” stated Google CEO Larry Page. “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 generated revenues of $50.18 billion in 2012, which is up from $37.91 billion in 2011.  Aside from restructuring charges and discontinued operations losses, Google reported a net income of $3.57 billion in the quarter.  This is up from $3.11 billion one year ago.  The company reported net income of $2.89 billion for the quarter, which is up from $2.71 billion a year earlier.  The company’s cost-per-click (CPC) increased 2% over the previous quarter, but was down from 6% in the previous year.  The CPC is the measure around how much advertisers are willing to pay for the traffic that Google sends to them.

Over 1 million Android devices are activated per day, but the searches on the devices are harder to profit from because of the difficulties in mobile shopping.  This is why CPC has declined in 5 consecutive quarters.  Page is optimistic about CPC though.  “I focus mostly on our products and assume usage will follow great products,” said Page on an earnings call. “CPCs will improve as these devices are improving.”

Google warned analysts that their estimates may be too high because many of their forecasts includes the sale of Motorola Home to Arris last month for $2.3 billion.  Google will be reporting Motorola Home revenues as a separate line item in their 2012 consolidated report.  If Google included Motorola Home in their revenues, they would have hit $15.24 billion.

Google currently has $48.1 billion in cash and cash equivalents on hand.  They have around 53,861 full employees (37,544 at Google, 11,113 at Motorola Mobile, and 5,204 for Motorola Home).  The company’s international revenues make up around 54% of the company’s revenues for Q4 compared to 53% in the previous quarter and 53% in Q4 2011.  Motorola Mobile continues to lose money for Google as they lost around $152 million in Q4.

[Source: CNET]