Google announced its Q4 2012 results on Tuesday, and although revenue and income were both up, cost-per-click prices were down for the sixth consecutive quarter. The good news: prices were better than in Q3 2012.
For Q4 2012, the company reported revenues of $14.42 billion for the quarter ending Dec. 31, 2012, up 36 percent year-over-year. Non-GAAP EPS in the fourth quarter of 2012 was $10.65, compared to $9.50 in the fourth quarter of 2011.
GAAP net income, including net loss from discontinued operations in the fourth quarter of 2012, was $2.89 billion, compared to $2.71 billion in the fourth quarter of 2011.
Cost-per-click prices decreased again, down six percent from year-over-year. In a positive vein, cost-per-click prices were up 2 percent from the third quarter of 2012.
Things were a little confusing because of Google's deal to sell the Motorola Home division to Arris for $2.35 billion, which was announced in December. Google Chief Accountant Brent Callinicos warned Wall Street analysts that they had been including results for Motorola Home in their profit and sales estimates for 2012, but those figures would be pulled out of the overall figures, and accounted for as “discontinued operations.”
He said, “That means our net income for this quarter as well as for Q2 ’12 and Q3 ’12 will be split between our ongoing operations and the Home business.”
In its press release about its results, Google was quite clear. The note "Consolidated revenues would have been $15.24 billion had Motorola Home been included" was right at the top.
The Street average for earnings estimates had been $12.3 billion in revenue and EPS of $10.54. Given necessary adjustments, Google's results look quite good, as it topped those numbers without Motorola Home.
Google stock is up about $35 to $737.50 in after-hours trading, at the time of this writing.