updated 04:41 pm EST, Tue January 22, 2013
Losses from Motorola Home division discounted in report
Google has announced its financial results for the quarter and the fiscal year that concluded December 31, 2012. The company reported consolidated revenues of $14.42 billion for the quarter, an increase of 36 percent compared to the fourth quarter of 2011. As previously announced, a $2.35 billion loss from transactions related to the divestiture of its Motorola Home division are not included in the results as Google considers them "discontinued operations."
GAAP operating income in the fourth quarter of 2012 for Google was $3.39 billion, or 24 percent of revenues. This compares to operating income of $3.51 billion, or 33 percent of revenues, in the fourth quarter of 2011. GAAP net income, including net loss from discontinued operations in the fourth quarter, was $2.89 billion compared to $2.71 billion in the fourth quarter of 2011. Earnings per share including impact from net loss from discontinued operations in the fourth quarter was $8.62 on 335 million diluted shares outstanding, compared to $8.22 in the fourth quarter of 2011 on 329 million diluted shares outstanding.
Highlights from the report include Google-owned sites generating revenues of $8.64 billion, or 67 percent of the total in the fourth quarter of 2012. Additionally, Google’s partner sites generated revenues of $3.44 billion, or 27 percent of total Google revenues in the same time period. Google revenues from outside of the United States totaled $6.9 billion, representing 54 percent of total Google revenues. Google finished out 2012 with net cash provided in the fourth quarter of $4.67 billion, with $3.65 billion available minus capital expenditures.
Notable expenses in the fourth quarter of 2012 were operating expenses of $4.81 billion, amortization expenses of $289 million, and $708 million in stock-based compensation. Google paid an effective 18 percent tax rate.
"We ended 2012 with a strong quarter,” said Larry Page, CEO of Google. “Revenues were up 36 percent year-on-year, and eight percent quarter-on-quarter. And we hit $50 billion in revenues for the first time last year –- not a bad achievement in just a decade and a half."