Google Inc. (NASDAQ: GOOG) today announced financial results for the quarter ended June 30, 2013 after the market closed but missed expectations for both revenue and earnings per share, sending shares down more than 5% or $50 a share in after hours trading.
Google reported consolidated revenues of $14.11 billion for the quarter ended June 30, 2013, an increase of 19% compared to the second quarter of 2012.
GAAP operating income in the second quarter of 2013 was $3.12 billion, or 22% of revenues.
This compares to GAAP operating income of $3.24 billion, or 27% of revenues, in the second quarter of 2012.
Q2 Financial Highlights
Paid Clicks – Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our Network members, increased approximately 23% over the second quarter of 2012 and increased approximately 4% over the first quarter of 2013.
Cost-Per-Click – Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our Network members, decreased approximately 6% over the second quarter of 2012 and decreased approximately 2% over the first quarter of 2013.
Google Revenues (advertising and other) – Google revenues were $13.11 billion, or 93% of consolidated revenues, in the second quarter of 2013, representing a 20% increase over second quarter 2012 revenues of $10.96 billion.
- Google Sites Revenues – Google-owned sites generated revenues of $8.87 billion, or 68% of total Google revenues, in the second quarter of 2013. This represents an 18% increase over second quarter 2012 Google sites revenues of $7.54 billion.
- Google Network Revenues – Google’s partner sites generated revenues of $3.19 billion, or 24% of total Google revenues, in the second quarter of 2013. This represents a 7% increase from second quarter 2012 Google network revenues of $2.98 billion.
- Other Revenues – Other revenues from Google were $1.05 billion, or 8% of total Google revenues, in the second quarter of 2013. This represents a 138% increase over second quarter 2012 other revenues of $439 million.
TAC – Traffic acquisition costs, the portion of revenues shared with Google’s partners, increased to $3.01 billion in the second quarter of 2013, compared to $2.60 billion in the second quarter of 2012. TAC as a percentage of advertising revenues was 25% in the second quarter of 2013, compared to 25% in the second quarter of 2012.
The majority of TAC is related to amounts ultimately paid to our Network members, which totaled $2.31 billion in the second quarter of 2013. TAC also includes amounts ultimately paid to certain distribution partners and others who direct traffic to our website, which totaled $706 million in the second quarter of 2013.
Google Operating Income – GAAP operating income for Google was $3.47 billion, or 26% of Google revenues, in the second quarter of 2013. This compares to GAAP operating income of $3.44 billion, or 31% of Google revenues, in the second quarter of 2012. Non-GAAP operating income in the second quarter of 2013 was $4.21 billion, or 32% of Google revenues. This compares to non-GAAP operating income of $3.99 billion in the second quarter of 2012, or 36% of Google revenues.
Interest and Other Income, Net – Interest and other income, net, was $247 million in the second quarter of 2013, compared to $253 million in the second quarter of 2012.
Income Taxes – Our effective tax rate was 24% for the second quarter of 2013.
Net Income – GAAP net income in the second quarter of 2013 was $3.23 billion, compared to $2.79 billion in the second quarter of 2012. Non-GAAP net income was $3.23 billion in the second quarter of 2013, compared to $3.36 billion in the second quarter of 2012. GAAP EPS in the second quarter of 2013 was $9.54 on 338 million diluted shares outstanding, compared to $8.42 in the second quarter of 2012 on 331 million diluted shares outstanding. Non-GAAP EPS in the second quarter of 2013 was $9.56, compared to $10.16 in the second quarter of 2012.
Cash – As of June 30, 2013, cash, cash equivalents, and marketable securities were $54.4 billion.
Headcount – On a worldwide basis, we employed 44,777 full-time employees (40,178 in Google and 4,599 in Motorola Mobile) as of June 30, 2013, compared to 53,891 full-time employees (38,739 in Google, 9,982 Motorola Mobile, and 5,170 Motorola Home) as of March 31, 2013.
Am sure glad to dump Google and Apple stocks months ago.
They are reaching maturing age just like Microsoft, no more innovations. Just same Old S*hit products . PC slumps, Intel down…
my Portfolio has gone up 55%, DJ will hit 16K !!
You can buy a lot with $54B in cash even though it’s probably locked up in some no tax haven.
Sooner rather than later people will learn that Google doesn’t organize the internet, it just searches and indexes portions of it. Things will change and Google would lose its place in the annals of internet lore except it has $54 B in cash to buy whatever is the next big thing is and the DOJ hasn’t hurt them yet.