Google's Q4 revenue jumps 36%
For the full year, Google's revenue topped $50 billion for the first time, something CEO Larry Page described as 'not bad'
IDG News Service - Google's fourth-quarter revenue was up 36% from the previous year, thanks to continued growth in its advertising business.
Revenue for the quarter, ended Dec. 31, was $14.42 billion, up from $10.6 billion a year earlier, Google announced Tuesday. The figure excludes the commissions and fees that Google pays to other sites that run its ads. Taking those into account, revenue for the last quarter was $11.34 billion.
Net income was $2.89 billion, or $8.62 a share, compared to $2.71 billion, or $8.22 per share, in the fourth quarter a year earlier, Google said. The latest figure includes the loss from Motorola's set-top box business, Motorola Home, which Google agreed to sell in December.
On a pro forma basis, excluding the Motorola loss and other one-time items, net income would have been $3.57 billion, or $10.65 a share, compared to $3.13 billion, or $9.50 per share, in the fourth quarter of 2011, Google said.
In a statement, CEO Larry Page said Google's full-year revenue topped $50 billion for the first time -- "not a bad achievement in just a decade and a half," he said.
Google announced its acquisition of Motorola Mobility last May, in a move intended to accelerate its mobile computing business. It announced a plan to sell the Home division to Arris in December for $2.35 billion in cash and stock. The transaction is expected to close this year.
During a conference call Tuesday with analysts, Page highlighted the importance of maintaining focus for the company. "We face so many opportunities it's always important to thoughtfully invest in the right areas where we can have the greatest impact," he said. "We don't want to spread ourselves too thin."
Google execs said they've inherited a 12- to 18-month product pipeline from the Motorola transaction that "we're still working through." Google's consolidated revenues would have been $15.24 billion had Motorola Home been included, the firm noted.
Revenue from Google's own websites made up two-thirds of its total revenue and was up 18% from last year. Revenue from its partner sites generated 27% of revenue, an increase of 19%, Google said. Its "other" revenue category accounted for the remainder.
Paid clicks, or the clicks on search ads that advertisers pay for, grew by 24% over 2011's fourth quarter. However, the cost of paid clicks, or the money Google charges when someone clicks on an ad, fell by 6%.
Google's stock was trading at $737.01 in the after hours, following its Tuesday closing price of $702.87.
- Data on the Move = Business on the Move; How Strategic Secure Managed File Transfer Adds Value and Drives Business This whitepaper describes the formal and informal file-sharing methods business employees use to perform their daily functions and explains that, from sending small...
- Why Projects Fail CIOs are expected to deliver more projects that transform business, and do so on time, on budget and with limited resources.
- The New Business Case for Video Conferencing: 7 Real-World Benefits Beyond Cost-Savings This whitepaper provides insight into the value of video conferencing in today's business environment, and how organizations are using visual collaboration to find...
- Gartner Magic Quadrant for Client Management Tools The client management tool market is maturing and evolving to adapt to consumerization, desktop virtualization, and an ongoing need to improve efficiency.
- Supercharge Your Web and Mobile App Development with High-Productivity Hybrid Cloud Webinar: Hear from industry experts about the amazing power at the intersection of next-generation web and mobile application development and cloud platforms.
- LIVE EVENT: 5/7, The End of Data Protection As We Know It. Introducing a Next Generation Data Protection Architecture. Traditional backup is going away, but where does this leave end-users? All Internet White Papers | Webcasts