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Google Makes $14.42 Billion in Q4, $50 Billion During 2012

By - Source: Google | B 16 comments

Represents an increase of 36 percent versus 2011's fourth quarter.

Google has announced its financial results for 2012's Q4, with the search engine giant generating $14.42 billion during last year's fourth quarter.

The figure represents an increase of 36 percent when compared to the same period in 2011, consequently resulting in Google enjoying its first year where it earned in excess of $50 billion.

"Not a bad achievement in just a decade and a half," said Google co-founder and CEO Larry Page. "In today's multi-screen world we face tremendous opportunities as a technology company focused on user benefit. It's an incredibly exciting time to be at Google."

Google generated revenues of $50.18 billion during 2012, an increase from $37.91 billion in 2011. When excluding restructuring charges and losses from discontinued operations, the firm reported net income of $3.57 billion during 2012's fourth quarter, a jump from $3.11 billion in 2011. After it announced its quarterly results, Google shares increased by $27, or almost 4 percent, in after-hours trading.

"While the growth in paid clicks has compensated for the decline in price, it is worth watching closely how the dynamic of supply growth impacts pricing as mobile monetization remains a laggard," said BGC Partners analyst Colin W. Gillis.

Google will report Motorola Home revenues as a separate item in its 2012 report, according to a note from Google's chief accountant, Brent Callinicos. The firm stressed that its revenues would have been $15.24 billion had Motorola Home, which it sold for $2.35 billion, been included.

Other highlights to the earnings result include:

  • Google has $48.1 billion in cash and cash equivalents.
  • It has 53,861 full time employees -- 37,544 for Google, 11,113 for Motorola Mobile and 5,204 for Motorola Home, which is up from 53,546 employees in September, 2012.
  • International revenues accounted for 54 percent of Google revenues in the fourth quarter of 2012 versus 53 percent in the previous quarter and 53 percent in the fourth quarter of 2011.
  • Motorola Mobile continues to lose money for its parent company, with the smartphone manufacturer losing $152 million during 2012's fourth quarter.

 

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  • 4 Hide
    cruiseoveride , January 23, 2013 12:11 AM
    You go Google! Smack that apple.
  • -7 Hide
    thecolorblue , January 23, 2013 12:14 AM
    Taxes Paid... practically nothing.

    http://www.guardian.co.uk/business/ireland-business-blog-with-lisa-ocarroll/2011/mar/24/google-ireland-tax-reasons-bermuda
    http://www.siliconvalleywatcher.com/mt/archives/2011/03/heres_how_googl.php
    http://www.businesspundit.com/25-corporations-that-pay-less-taxes-than-you-do/
    http://delimiter.com.au/2012/05/03/google-australia-1bn-in-revenue-74k-in-tax/
  • 9 Hide
    thecolorblue , January 23, 2013 12:15 AM
    2011 --> Google Australia: ~$1bn in revenue, $74k in tax

    gotta love that!
  • Display all 16 comments.
  • 4 Hide
    thecolorblue , January 23, 2013 12:18 AM
    Google pays ~2.4% tax rate thanks to a popular strategy known as the “Double Irish.”
  • 1 Hide
    ericburnby , January 23, 2013 12:21 AM
    They didn't "make" $14.42 billion, they made $3.57 billion. $14.42 billion is their gross income before expenses.
  • 1 Hide
    thecolorblue , January 23, 2013 12:27 AM
    ericburnbyThey didn't "make" $14.42 billion, they made $3.57 billion. $14.42 billion is their gross income before expenses.

    Technically true... blatantly false --> thus the "Double Irish"

    "expenses" such as licensing fees for copyrights, trademarks and patents to their wholly owned subsidiaries located abroad.

    http://en.wikipedia.org/wiki/Double_Irish_arrangement
  • 1 Hide
    thecolorblue , January 23, 2013 12:32 AM
    It's quite simple really. Example from 2009:

    "The 2009 Google Ireland Limited accounts show the company turned over a phenomenal €7.9bn in Europe for the year ending 2009 - up from €6.7bn the previous year.

    The internet giant made a gross profit of €5.5bn, with an operating profit of €45m after "administrative expenses" of €5.467bn were stripped out.

    Administrative expenses largely refer to royalties (or a licence fee) Google pays its Bermuda HQ for the right to operate.

    http://www.guardian.co.uk/business/ireland-business-blog-with-lisa-ocarroll/2011/mar/24/google-ireland-tax-reasons-bermuda

    good times
  • 0 Hide
    m32 , January 23, 2013 12:40 AM
    thecolorblueTaxes Paid... practically nothing.http://www.guardian.co.uk/business [...] ns-bermudahttp://www.siliconvalleywatcher.co [...] _googl.phphttp://www.businesspundit.com/25-c [...] an-you-do/http://delimiter.com.au/2012/05/03 [...] 4k-in-tax/



    Hater, how much Apple pays?
  • 0 Hide
    thecolorblue , January 23, 2013 1:09 AM
    m32Hater, how much Apple pays?

    >_<

    Facts are facts.

    If google were the only corporation with this tax dodging strategy it would be called the "Double Google" rather than the "Double Irish". Nobody implied that Apple doesn't employ the same strategy, and if you bothered to glance at the 3nd link in the bit you quoted you'd see 24 corporations mentioned besides google.
  • 1 Hide
    wemakeourfuture , January 23, 2013 1:20 AM
    m32Hater, how much Apple pays?


    A lot more in taxes and at a much higher rate. They do some offshore stuff, NOTHING to the extent Google or Microsoft engage in. Apple pays a much higher tax rate in the US than either of those companies. Plus they way you're say "how much Apple pays?" I can tell you're not really asking a question but trying to imply Apple is as bad or worse than Google and that's far from the truth. Google is one of the worst large cap company when it comes to tax avoidance. This is well documented, just like 'thecolorblue' has been gracious enough to provide the links.

    'thecolorblue' is not a hater simply stating the egregious practice by corporations who make billions in certain countries but are finding every loop hole to escape taxes.

    For example, Google generates about $4 billion in the U.K., at least about $1 billion in profit, but paid about $10 million in taxes, you think that's right or fair?

    http://www.telegraph.co.uk/technology/google/9739039/Googles-tax-avoidance-is-called-capitalism-says-chairman-Eric-Schmidt.html

    I sure know I cannot avoid taxes like Google, I pay my fair share, too bad Google doesn't feel that way. The average citizen cannot avoid taxes by using off-shore jurisdictions not sure why corporation are allowed to get away with this wanton excessive greed , except they spend millions donating to politicians and lobby groups to get their way.
  • 1 Hide
    s997863 , January 23, 2013 3:24 AM
    how about a primer article on what exactly they get income from & how much? I'm still finding it hard to grasp this complicated idea of free, non-tangible services making so much money. I don't pay for search or gmail, but I understand that advertising companies pay google for smalle spaces on the pages I browse, right? is that the only kind of income or do they also have other cash income not related to advertising? i never buy products just cause i saw an ad so it's just beyond me that so much money is paid for ads??
  • -3 Hide
    alidan , January 23, 2013 4:46 AM
    thecolorblueTaxes Paid... practically nothing.http://www.guardian.co.uk/business [...] ns-bermudahttp://www.siliconvalleywatcher.co [...] _googl.phphttp://www.businesspundit.com/25-c [...] an-you-do/http://delimiter.com.au/2012/05/03 [...] 4k-in-tax/


    i wish google got moeny back, and in the ammount of billions, something so obsurd that the people realize that something is effed up, and change needs to happen.

    i support a flat tax across the board, everything, taxed the same, in 3 classes
    people
    small business
    big business
  • -1 Hide
    Anonymous , January 23, 2013 5:11 AM
    What people overlook is that the large after tax profits by google are available for dividend distributions to shareholders, which are taxed at their marginal tax rates, either high or low depending on the recipient. What this implies is that while corporate tax recoveries for the IRS are low at the initial onset, the personal taxes on dividends do make up for a bit of the shortfall. The problem with Google is that it can be greedy and use the money to reinvest back into the business, rather than distribute it as dividends.
  • 1 Hide
    christarp , January 23, 2013 6:22 AM
    m32Hater, how much Apple pays?

    Well, apple paid 6 billion in federal income tax in 2012, that's 1/40th of the entire federal income tax the us gets out of every company combined.
  • 0 Hide
    doive1231 , January 23, 2013 7:23 AM
    Soon their revenue will be a googol.
  • 0 Hide
    AM2A , January 23, 2013 3:07 PM
    s997863how about a primer article on what exactly they get income from & how much? I'm still finding it hard to grasp this complicated idea of free, non-tangible services making so much money...

    They break down their revenue sources here (it's lacking in detail, not uncommon):
    http://investor.google.com/earnings/2012/Q4_google_earnings_tab7.html
    total advertising revenue is reported as 43.686 billion, figures are unaudited