Google Announces Q1 2014 Results, Revenue Up 31 Percent To $14B, Net Income Of $3.35B

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Google Inc. reported consolidated revenues of $13.97 billion for the quarter ended March 31, 2013, an increase of 31% compared to the first quarter of 2012. Google Inc. reports advertising revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs (TAC). In the first quarter of 2013, TAC totaled $2.96 billion, or 25% of advertising revenues.

According to the slew of analysts polled by Bloomberg Businessweek, Google was expected to report earnings of $10.70 per share on $14.3 billion in revenues — Google handily came out ahead on earnings, but didn’t quite meet the Street’s revenue forecasts.

Meanwhile, there hasn’t been much additional light shed on the Motorola Mobility which Google moved to acquire for $12.5 billion in August 2012. Back in Q4 the pricey hardware company generated $1.51 billion in revenue (accounting for about 11% of Google’s consolidated revenues), and that number has sunk from there. This time, Motorola Mobility only managed to rake in $1.02 billion in revenue, though that isn’t much of a surprise considering that it’s mobile phone output has been noticeably low these past few months.

Q1 Financial Highlights

Revenues and other information – On a consolidated basis, Google Inc. revenues for the quarter ended March 31, 2013 were $13.97 billion, an increase of 31% compared to the first quarter of 2012.

Google Revenues (advertising and other) – Google revenues were $12.95 billion, or 93% of consolidated revenues, in the first quarter of 2013, representing a 22% increase over first quarter 2012 revenues of $10.65 billion.

  • Google Sites Revenues – Google-owned sites generated revenues of $8.64 billion, or 67% of total Google revenues, in the first quarter of 2013. This represents an 18% increase over first quarter 2012 Google sites revenues of $7.31 billion.
  • Google Network Revenues – Google’s partner sites generated revenues of $3.26 billion, or 25% of total Google revenues, in the first quarter of 2013. This represents a 12% increase from first quarter 2012 Google network revenues of $2.91 billion.
  • Other Revenues – Other revenues from Google were $1.05 billion, or 8% of total Google revenues, in the first quarter of 2013.  This represents a 150% increase over first quarter 2012 other revenues of $420 million.

Google International Revenues – Google revenues from outside of the United States totaled $7.1 billion, representing 55% of total Google revenues in the first quarter of 2013, compared to 54% in the fourth quarter of 2012 and in the first quarter of 2012.

Motorola Mobile Revenues (hardware and other) – Motorola Mobile revenues were $1.02 billion, or 7% of consolidated revenues in the first quarter of 2013.

Operating Income – On a consolidated basis, GAAP operating income in the first quarter of 2013 was $3.48 billion, or 25% of revenues. This compares to GAAP operating income of $3.39 billion, or 32% of revenues, in the first quarter of 2012. Non-GAAP operating income in the first quarter of 2013 was $4.22 billion, or 30% of revenues. This compares to non-GAAP operating income of $3.94 billion, or 37% of revenues, in the first quarter of 2012.

  • Google Operating Income – GAAP operating income for Google was $3.75 billion, or 29% of Google revenues, in the first quarter of 2013. This compares to GAAP operating income of  $3.39 billion, or 32% of Google revenues, in the first quarter of 2012. Non-GAAP operating income in the first quarter of 2013 was $4.40 billion, or 34% of Google revenues. This compares to non-GAAP operating income of $3.94 billion in the first quarter of 2012, or 37% of Google revenues.
  • Motorola Mobile Operating Loss – GAAP operating loss for Motorola Mobile was $271 million, or -27% of Motorola Mobile revenues in the first quarter of 2013. Non-GAAP operating loss for Motorola Mobile in the first quarter of 2013 was $179 million, or -18% of Motorola Mobile revenues.

Cash – As of March 31, 2013, cash, cash equivalents, and marketable securities were $50.1 billion.

Headcount – On a worldwide basis, we employed 53,891 full-time employees (38,739 in Google and 9,982 in Motorola Mobile and 5,170 in Motorola Home) as of March 31, 2013, compared to 53,861 full-time employees as of December 31, 2012.