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:
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- 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.
Zak Islam is a freelance writer focusing on security, networking, and general computing. His work also appears at Digital Trends and Tom's Guide.
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thecolorblue Taxes Paid... practically nothing.Reply
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/ -
thecolorblue Google pays ~2.4% tax rate thanks to a popular strategy known as the “Double Irish.”Reply -
ericburnby They didn't "make" $14.42 billion, they made $3.57 billion. $14.42 billion is their gross income before expenses.Reply -
thecolorblue 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"Reply
"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 -
thecolorblue It's quite simple really. Example from 2009:Reply
"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 -
m32 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/Reply
Hater, how much Apple pays? -
thecolorblue m32Hater, how much Apple pays?>_<Reply
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. -
wemakeourfuture m32Hater, how much Apple pays?Reply
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.