Google shows 21% year-on-year revenue growth
Google has announced financial results for the quarter ended June 30, 2012. “Google standalone had a strong quarter with 21% year-on-year revenue growth, and we launched a bunch of exciting new products at I/O – in particular the Nexus 7 tablet, which has received rave reviews,” said Larry Page, CEO of Google.
“This quarter is also special because Motorola is now part of the Google family, and we’re excited about the potential to build great devices for users.”
Google Inc. completed its acquisition of Motorola Mobility Holdings, Inc. (Motorola) on May 22, with the assets and liabilities of Motorola were included in Google Inc.’s Consolidated Balance Sheet as of June 30, 2012, and the operating results of Motorola were included in Google Inc.’s Consolidated Statement of Income from the acquisition date through June 30, 2012.
CFO Patrick Pichette noted, “We can expect Motorola to continue to show some accounting variability, as is typical with the closing of such large transactions.”
Google Inc. reported consolidated revenues of $12.21 billion for the quarter ended June 30, 2012, an increase of 35% compared to the second quarter of 2011. Google Inc. reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs (TAC). In the second quarter of 2012, TAC totaled $2.60 billion, or 25% of advertising revenues.
Operating income, operating margin, net income, and earnings per share (EPS) are reported on a GAAP and non-GAAP basis. The non-GAAP measures, as well as free cash flow, an alternative non-GAAP measure of liquidity, are described below and are reconciled to the corresponding GAAP measures at the end of this release.