Google may be a company of many personalities — browser and operating system developer, connected-device manufacturer, fiber-optic Internet servicer, search giant and social network, among many others. But the core business is still about one thing: Advertising, as calendar first quarter results, delivered today after the closing bell, show.
Revenue rose 31 percent to $$13.97 billion, year over year; operating income, excluding Traffic Acquisition Costs, was $3.48 billion, up from $3.39 billion. Net income climbed to 3.35 billion up from $2.89 billion. That’s $9.94 earnings per share, including costs associated with discontinued operations.
Average analyst consensus was $14.04 billion revenue and $10.69 earnings per share, for the quarter. Revenue estimates ranged from $9.81 billion to $15.12 billion, with estimated year-over-year growth of 72.5 percent.
“We had a very strong start to 2013, with $14 billion in revenue, up 31 percent year-on-year” Larry Page, Google CEO, says. “We are working hard and investing in our products that aim to improve billions of people’s lives all around the world”.
Turn the Page
First quarter marks just a few days short Larry Page’s second anniversary returning as CEO (April 4). Google’s master had a busy quarter. The company:
- Launched Chromebook Pixel
- Set Google Reader to close July 1
- Sidelined Android chief Andy Rubin
- Opened the Chrome Beta for Android channel
- Consolidated Android and Chrome leadership
- Hired Guy Kawasaki as Motorola chief evangelist
- Axed more than a half-dozen products or services
- Moved Google Maps from Commerce to Search group
That’s just a short, short list of the many strategic actions or adjustments made in just one quarter.
There is clear consolidation underway as the CEO brings trusted executives — those with whom he resonates or who share his vision — closer to the inner circle. Meanwhile, a different Google emerges as Page’s vision, and that of his lieutenants, propagates — one that: cross-integrates more products and services, releases updates at faster pace and is much, much, much more aggressive in the market place. The Google you thought you knew is something else.
Financial Highlights
TAC. Google’s financials include Traffic Acquisition Costs — that’s revenue shared with partners. For Q1: $2.96 billion, compared to $2.51 billion a year earlier. TAC was one-quarter of revenue in both quarters.
Paid Clicks increased 20 percent year over year and 3 percent sequentially.
Cost-Per-Click rose 4 percent yearly and quarterly.
International: $7.5 billion outside the United States, accounting for 55 percent of revenues — that’s up 1 percent by year and quarter.
Motorola Mobile revenues reached $1.02 billion, or 7 percent for consolidated Google results.
Google revenue (excluding Motorola) was $12.95 billion — that’s up from 22 percent from $10.65 billion a year earlier.
Google-owned sites: $8.64 billion, up 18 percent from $7.31 billion.
Google Network (e.g., partner sites): $3.26 billion, up 12 percent from $2.91 billion.
Other: $1.05 billion, up 150 percent from $420 million.
MORE TO COME
Photo Credit: meneame comunicacions, sl