Google Q3 2012: Revenue Jumps to $14.1 Billion, Motorola Pressures Earnings
By on October 18th, 2012

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

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Author: Pathik Google Profile for Pathik
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Pathik has written and can be contacted at pathik@techie-buzz.com.

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