Google Q4 2012 Earnings Are Staggering Thanks To Ads

Posted on 23 January 2013 by author

It’s that time of the year again when companies would be evaluating their quarterly performance and reveal their earnings for the period. Google is one of those companies which had been very productive so far. With earnings amounting to $14.42 billion and a net income of up to $2.89 billion for Q4 2012, it was indeed another strong and successful fiscal period for Google. The total revenue, compared to last year’s, went up by 36% while the net income is a little higher than the $2.71 billion earned last year.

If you think that’s all there is to it, there’s actually more to feel impressed with Google. For the first time in 2012, Google reached a total of $50 billion in revenue. The Google-acquired Motorola Mobility, which sells handsets and tablets, also earned $1.51 billion in revenue for Q4 2012 though it also revealed an operating loss of $353 million. This may not be a good sign and cannot have a direct effect on Google’s earnings.

As indicated from the breakdown, Google’s revenues came from several sources. For one thing, Google-owned sites earned $8.64 billion in revenue. Secondly, the company’s partner sites reached $3.44 billion in revenue. These revenues meant a year-over-year increase of 18 and 19 percent respectively. Cost-per-click measuring the cost of ad-related clicks on Google’s sites and network sites had been reduced by 6% year-over-year though it had increased by 2% during the last quarter. On the other hand, aggregate paid clicks measuring the ads clicked on Google network sites increased by 24% in Q4 2011 and up to 9% during the last quarter. Lastly, Google gained $6.9 billion in revenue from outside of the US which makes up more than half of Google’s total Q4 2012 revenue.

During the same period of Q4 2012, the company’s workforce has been added with 350 more employees which when totaled reached around 54,000. From this number, 16,000 workers are among those who belong to Motorola Mobility. With this record, it is interesting to note how much the company has paid in taxes. For Q4 2012, Google’s tax rate amounted to 18%.


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