After selling Motorola Mobility to Lenovo for $2.9 billion yesterday, Google has reported consolidated revenues of $16.86 billion for the quarter ended December 31, 2013, a 17% increase from $14.42 billion revenues in the same quarter last year. Note that these revenues include a traffic acquisition cost of $3.31 billion.
– Google Revenues (Advertising and others) up 22%: Google reported increased revenues of $15.72 billion, a 22% increase from $12.91 billion revenues in the same quarter last year. These revenues represent 93% of Google’s consolidated revenues for the quarter.
– Motorola Mobile Revenues (Hardware and others) Declines: Motorola Mobile reported revenues of $1.24 billion, down 17.9% from $1.51 billion in Q4 2013. These revenues represent only 7% of Google’s consolidated revenues for the quarter.
– Google owned sites vs network: Google-owned sites reported revenues of $10.55 billion for the quarter, registering a 22% increase year-on-year (YoY) from $8.64 billion in Q4 2012, while the network revenues from partner sites (i.e. through Adsense programs) were $3.52 billion, a minor 3% growth YoY from $3.44 billion in Q4 2012.
The total advertising revenues were at $14.07 billion for the quarter and is still the major contributor for Google’s revenues, accounting for around 89.5% of its revenues and around 83.5% of Google’s consolidated revenues during the quarter.
– Other Revenues: Other revenues for the company was at $1.65 billion for the quarter, almost doubling from $829 million in Q4 2012. Other revenues comprises revenues generated from content sales and hardware sales on Google Play.
Beginning last quarter (Q3 2013), Google and Motorola segment revenues have been impacted by intersegment transactions which resulted in intersegment and deferred revenues of $105 million in the current quarter, which are eliminated from the consolidated results.
– International Revenues: Google revenues from outside of the United States was at $8.77 billion, which represents 56% of its total revenues for the quarter, compared to 56% in the previous quarter (Q3 2013) and 54% in the same quarter last year (Q4 2012).
– Paid Clicks: Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of AdSense partners, increased around 31% YoY, and around 8% quarter on quarter (QoQ).
- Cost-Per-Click: Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of AdSense partners, however declined by around 11% YoY and around 2% QoQ.
– Traffic Acquisition Costs: As stated earlier, traffic acquisition cost (TAC), the part of Google’s revenues which is shared with its partners, was at $3.31 billion for the quarter, up from $3.08 billion reported in the same quarter last year. Of this, $2.49 billion was paid by Google to its network members and the remaining $824 million to certain distribution partners & others who directed traffic to Google’s website.
– Total Cash: As of December 31, 2013, Google has $58.72 billion money in form of cash, cash equivalents, and marketable securities, as compared to $56.52 billion in the previous quarter.
– Headcount: Globally, Google has 47,756 full-time employees as of December 31, 2013. This comprises 43,862 employees in Google and 3,894 employees in Motorola. In comparison, Google had 46,421 full-time employees (42,162 in Google and 4,259 in Motorola Mobile) in the previous quarter.
Other developments during the quarter
– Google India reported revenues of Rs 2,076.79 crore for the 12 month period ended March 31, 2013 (FY13), registering a significant 78.7% growth from 1162.19 crore from the previous financial year (FY12). Profit after tax however declined by 9.7% to Rs 137.4 crore from Rs 150.73 crore in FY12.
– Google partnered Archaeological Survey of India (ASI) to add 360-degree street view imagery of 100 prominent heritage sites to Google Maps.
– It introduced Chromebooks in India by launching two new devices – Acer C720 and HP Chromebook 14. Samsung also launched its Chromebook later. These are available for purchase in offline stores like Reliance Digital and Croma stores and e-commerce stores like Flipkart.
– Google’s flagship phone Nexus 5 was launched on Google Play in India.
– Google organized Great Online Shopping Festival (GOSF) which faced a lot of issues initially, but after the issues were resolved, most companies claimed to have received substantial sales from the initiative.
– Google Hotel Finder added Indian online travel agents like MakeMyTrip and Yatra.
– Google’s YouTube is also exploring partnerships with DTH companies in India.