Google reported its earnings for Q3 2012, with rather good numbers, but its stock price has crashed more than 10% as they missed analyst estimates. Its revenues increased 45% year-over-year, to $14.10 billion. The bump in revenue was due to the Motorola acquisition, which contributed $2.575 billion, while its core advertising business accounted for around $11.526 billion.
Its traffic acquisition costs were close to $2.77 billion, which brings its net revenue numbers to $11.33 billion.
However, its net income dropped around 20% to $2.176 billion, as Motorola’s operating losses weighed down on Google’s very profitable business.
Of Google’s core ad revenue, $7.727 billion was contributed by Google’s own web properties, $3.133 billion was contributed by partner websites, while $666 million was classified as revenue from other sources.
Aggregate paid clicks increased 33% year-over-year, but the cost per lick decreased nearly 15%. Overall, Google’s ad business still seems to be expanding, but at a slowing rate.
Motorola may have been Google’s worst purchase to date. It’s still not clear what exactly Google gained by acquiring the lumbering hardware giant.
Google ended the quarter with $16.26 billion in cash and cash equivalents, and another $29.46 billion in marketable securities and short-term investments.
via Google – SEC