Google’s Earnings Rise 11% in Q2VW Staff
On Thursday, Google Inc (NASDAQ:GOOG) reported its second quarter earnings jumped 11 percent, with adjusted results exceeding analysts’ expectations.
According to MarketWatch, for the period ended June 30, Google had a net income of $2.79 billion ($8.42 per share) as compared to its $2.51 billion net income ($7.68 per share) from the previous year. Earnings on an adjusted basis came in at $3.35 billion ($10.12 per share) for the recent quarter. Looking at net revenue, without the Motorola Mobility addition, it was $8.36 billion.
Analysts had estimated earnings at $10.04 per share on core revenue of $8.41 billion, according to Reuters.
Larry Page, CEO of Google said of the quarter via a press release, “Google standalone had a strong quarter with 21% year-on-year revenue growth, and we launched a bunch of exciting new products at I/O – in particular the Nexus 7 tablet, which has received rave reviews. This quarter is also special because Motorola is now part of the Google family, and we’re excited about the potential to build great devices for users.”
Highlights from the second quarter included the following:
- Google Inc (NASDAQ:GOOG) completed its Motorola Mobility Holdings, Inc. (Motorola) acquisition on May 22, 2012 (the is the acquisition date). Its assets and liabilities had been included in Google Inc.’s Consolidated Balance Sheet as of June 30, 2012; Motorola’s operating results were added into Google’s Consolidated Statement of Income from the acquisition date through June 30, 2012. CFO Patrick Pichette said, “We can expect Motorola to continue to show some accounting variability, as is typical with the closing of such large transactions.”
- Google revenues were $10.96 billion, or 90% of consolidated revenues, in the second quarter; this represents a 21 percent rise over the previous year’s $9.03 billion.
- Google-owned sites generated revenues were $7.54 billion, or 69 percent of Google revenues in the second quarter; this represents a 21 percent increase from last year’s $6.23 billion figure.
- Google’s partner sites had revenues of $2.98 billion or 27 percent of Google revenues in the second quarter. This represents a 20 percent jump from last year’s $2.48 billion revenues.
- Globally, Google employed 54,604 full-time employees (34,311 Google business and 20,293 Motorola business) at the end of the second quarter as compared to 33,077 full-time employees at the end of the first quarter.
- Google’s GAAP operating income was $3.44 billion or 31 percent of its revenues in the second quarter. This compares to the previous year’s $2.88 billion, or 32 percent of Google revenues.
- Motorola’s GAAP loss for was $233 million ($192 million for mobile segment and $41 million for home segment), or -19 percent of Motorola revenues in the second quarter. For non-GAAP operating loss in the second quarter, it was was $38 million, or -3 percent of revenues.
Google Inc (NASDAQ:GOOG) will hold a live audio webcast of its second quarter 2012 earnings release call at http://investor.google.com/webcast.html. It began at 1:30 PM (PT) / 4:30 PM (ET).