Google Reports Earnings for Q2 2012; Revenue Jumps to $12.2 Billion
By on July 20th, 2012

Google reported its earnings for Q2 2012, with its quarterly revenue growing to $12.2 billion. Of that, nearly $1.25 billion was due to its acquisition of Motorola, while organic growth contributed nearly 21% growth. Its overall gross margins also took a hit following the Motorola acquisition, due to much higher relative cost of revenues for the hardware business.

Google’s operating income was nearly $3.2 billion and its net income was around $2.8 billion.

Of the $12.2 billion, advertising revenue from its own website was close to $7.5 billion, while ad revenue from its network was about $3 billion. Other revenues added up to $0.44 billion, while revenue from Motorola added up to $1.25 billion.

There weren’t many surprises this earnings season; Google’s aggregate paid clicks increased 42% this quarter, while its cost-per-click declined nearly 16%. Both changes can be attributed to the increasing penetration of mobile devices and mobile search.

Traffic acquisition costs, or the portion of ad revenue shared with partners, increased from 24% of revenue to 25%.

Interestingly, Google’s cash reserves have ballooned up to almost $43 billion.

Larry Page, CEO of Google, said:

“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.”

via Google

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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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