Google Tops $50 Billion For 2012 - InformationWeek
Government // Enterprise Architecture
05:42 PM
Connect Directly
Building Security for the IoT
Nov 09, 2017
In this webcast, experts discuss the most effective approaches to securing Internet-enabled system ...Read More>>

Google Tops $50 Billion For 2012

Google's strong Q4 2012 earnings beat analysts' expectations.

Google reported Tuesday that it earned $14.42 billion in Q4 2012, beating expectations and sending the stock up 4% in after-hours trading.

Google shares closed down 1.64 points for the day, but reversed the decline after the market closed, rising more than 34 points in the hours following Google's financial filing.

The company's non-GAAP earnings-per-share came to $10.65. Analysts had been expecting $12.36 billion in revenue for the quarter, according to Thomson Reuters, and $10.52 per share.

In a statement, Google CEO Larry Page said that revenue rose 36% compared to 2011 and 8% compared to the same quarter a year ago. "And we hit $50 billion in revenues for the first time last year," he said.

The company appears to have succeeded in its effort to mitigate potential disappointment by reminding Wall Street analysts to update their estimates to account for Google's agreement to sell its Motorola Home set-top box business to Arris Group for $2.35 billion.

In a note posted to Google's investor website last week, VP Brent Callinicos, treasurer and chief accountant for the company, wrote, "as of this writing, a majority of Wall Street analysts who cover Google have not reflected the Home business as discontinued operations in their estimates."

[ The smartphone wars rage on. See the latest: iPhone Beats Android In U.S. Market. ]

Google appears to have been concerned that investors might be confused about what the company would be including in its revenue numbers. But the company's strong performance made such worries moot.

On Google's conference call for investors, Page's voice sounded raspy and strained, sufficiently so that several reporters listening in on the call noted via Twitter how unusual he sounded. Page did not participate in Google's Q2 2102 earnings conference as a result of an undisclosed ailment that affected his voice. When he did speak during the Q3 2012 call, his voice was hoarse.

Google declined to comment about Page's voice. Once Page stopped reading from prepared remarks and started responding to questions, he sounded somewhat improved.

But perhaps more troubling was the lack of numbers to back up Page's claims about how well things have been going. Page said Samsung's new Chromebook was "a holiday highlight." He added, "I love mine. It's super-easy to use and it almost maintains itself." But he failed to provide sales figures for Chromebooks of any sort.

Page went on to highlight progress Google has made with Web and voice search, as well as its effort to integrate its Knowledge Graph database into search results.

Page also called attention to the popularity of the company's Nexus 4 phone and its Nexus 7 and Nexus 10 tablets, again without citing sales figures. However, he did acknowledge that Google can improve how it manages its supply chain. "Clearly, there's work to be done managing our supply better, as well as building a great customer experience," he said. "And that is a priority for the teams."

Page didn't miss the opportunity to celebrate how well Google's iOS apps have been doing. He noted that Google Maps for iOS was downloaded over 10 million times during its first 48 hours of availability and that six Google apps, including Chrome, Google Search, Gmail and YouTube, were included in the Apple App Store list of the Best Free Apps of 2012.

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of IT Report
In today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll