Google CEO Larry Page declared that the company’s quarterly revenue witnessed a 24% increase YoY at $10.65 billion at the end of the first quarter closing on 31st March 2012. Note that this revenue is reported without deducting Traffic Acquisition costs, which was at $2.51 billion or 24.5% of ad revenue.

Stock – Split: The company also announced a two-for-one stock split,  wherein it plans to create a new class of non-voting capital stock. Shares will be distributed via a stock dividend to all existing stockholders under which the owner of each existing share will receive one new share of the non-voting stock, giving investors twice the number of shares they had before. This will allow Google’s founders to maintain their control over the company, since they’ll have the majority of shares that have ‘voting’ rights.

Highlights: 

Google+: The company is still enthusiastic about Google+, and said that there were two parts of Google+ , a social spine and a social network destination. According to Google CEO, Larry Page, the social spine is proportional to Google and all of the usage across Google. He informed that over 170 million people have now upgraded to Google+. However, we don’t know if this figure is inclusive of Google+ social network users or just users who recommend search results, pages or apps and other services.

He said that Google was on the right track on offering a social spine across all its products, and till date 120 products have been integrated with the social network., ” You can see friends’ recommendations when you’re using Google Play and you don’t think about that as Google+, but it just comes from that infrastructure. And we’re seeing a positive impact all across the web,” said Page. He talked about the new User Interface that the company introduced for Google+ offering customizable navigation, better discoverability for Hangouts and larger images across the interface.

Chrome: Gogle’s Chrome web browser has a user base of 200 million.

YouTube: Over 800 million monthly users were uploading over an hour of video per second, according to Page.  He said that Google’s at a point where major brand advertisers, from movie studios to CPG companies, are finally looking to digital media as a central part of their marketing efforts. “We are making huge progress. YouTube has gone from an interesting ad buy to key buy for brands.” He informed that most of the in-stream ads on YouTube were skippable, while its TrueView ad format, were gaining popularity.

Android & Tablets: According to Larry Page, 850,000 Android devices are activated every day. On being asked by an analyst how Google benefits from Android- whether it gets more revenue from Android or Traffic acquisition cost is lower, Page said that it was at a very early stage and that the company gains from product integration.

On tablets, Page said that there’s been a lot of success on some lower-priced tablets that run Android, maybe not the full Google version of Android and that the company is focused on the lower end of the market.

Display ads business: According to Page, Google’s display ads business generated revenues of $5 billion annually.

Financials

– Google owned sites vs network: Google-owned sites generated revenues of $7.31 billion, or 69% of total revenues, a 24% increase year on year from $5.88 billion.

– Network Revenues from partner sites (through AdSense programs) were $2.91 billion, or 27% of total revenues, in the first quarter of 2012, a 20% increase year on year from $2.43 billion.
– US vs International Revenues: Revenues from outside of the United States totaled $5.77 billion, representing 54% of total revenues in the first quarter of 2012, an increase compared to 53% in the third quarter of 2011 and in the first quarter of 2011. Revenues from the United Kingdom totaled $1.15 billion, representing 11% of revenues.

– Paid Clicks: Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of AdSense partners, increased approximately 39% up year on year, and 7% quarter on quarter.

– Cost-Per-Click: Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of AdSense partners, decreased approximately 12% year on year and 6% quarter on quarter.
– Headcount: On a worldwide basis, Google employed 33,077 full-time employees as of March 31, 2012, up from 32,467 full-time employees as of December 31, 2011.

Results | 2012 Founders’ Letter