Google earnings report: Profit beats the street, revenue grows 24%, stock split announced

posted by Scott H.

Apr 12, 2012, 3:40 PM

Google earnings report: Profit beats the street, revenue grows 24%, stock split announced

Last quarter saw Google’s revenue eclipse $10 billion for the first time, but their earnings per share missed street estimates slightly. This quarter Big G is singing a happier tune, reporting revenue of $10.65 billion, and earnings per share (EPS) of $10.08, which significantly beat the street consensus of $9.65.

Google CEO Larry Page said, “Google had another great quarter with revenues up 24% year on year. We also saw tremendous momentum from the big bets we’ve made in products like Android, Chrome and YouTube. We are still at the very early stages of what technology can do to improve people's lives and we have enormous opportunities ahead. It is a very exciting time to be at Google.”

Google also announced they will be creating a new class of “non-voting” stock that can be used without diluting the governance structure of the company. Current stock owners will get a share of the new stock for each currently owned stock, meaning that this is essentially a 2:1 stock split. The proposal was passed unanimously by the board of directors.

Google’s cofounders, Larry Page and Sergey Brin, released a statement explaining the structure and how they believe it will allow Google to continue to concentrate on the long term, saying:

“We have always managed Google for the long term, investing heavily in the big bets we hope will make a significant difference in the world. Some of these bets have been tremendous, funding our activities and generating significant gains for our shareholders. Others have been less successful. But the ability to take these kinds of risks has been crucial to Google’s overall success and we aim to maintain this pioneering culture going forward.”

Google's earnings call is going on right now, and we'll be sure to report any important mobile information that is disclosed during it.

sources: Google Investor Relations, 2012 Founders Letter

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17 Comments

17. eaxvac

Posts: 328; Member since: Jan 15, 2012

beware the googlightning guy

posted on Apr 13, 2012, 4:25 AM 1

7. networkdood

Posts: 6330; Member since: Mar 31, 2010

What is up with the soccer dude cho? Anyways, considering how much free stuff we get with Android, this is impressive.

posted on Apr 12, 2012, 4:51 PM 2

9. taco50

Posts: 5506; Member since: Oct 08, 2009

Impressive indeed. Considering all of your info, including location, is on google's servers stored and being sold to the highest bidder. Soon they plan on listening in on your phone calls too. Nothing you get from google is free. You have to whore out your data to get it.

posted on Apr 12, 2012, 5:40 PM 1

10. protozeloz

Posts: 5396; Member since: Sep 16, 2010

you lack knowledge of how Google business really works, they don't sell your info twerp so go hate somewhere else. why would Google sell info that's vital to their advertisement system? its like having a Forrest with an unlimited amount of wood if piece of wood cost $10 on the market you don't want to sell the wood that cost you $5 to produce for $7-$8 to someone who will sell it at $10 when you own a wood business that sells it at $10 Google wont sell your info because its better for them to say they have 1m customers that like guitar and they could do advertisement for your guitar company

posted on Apr 12, 2012, 6:34 PM 3

13. jroc74

Posts: 6023; Member since: Dec 30, 2010

And which internet search engine do you use.......which desktop OS do you use..... I suggest you read every Terms of Service and every Privacy Policy of every website you join, every email address you use, every mobile carrier and internet provider you use. Not saying anything is being sold with what I mentioned to the highest bidder..cuz you are just assuming and guessing with Google. Dont just look at Google...Take the blinders off and look at the bigger picture....if you think your info is any safer with ...everything else.... you do online or on your PC. ....do you think you are any safer....with Apple....lol

posted on Apr 12, 2012, 7:32 PM 1

14. TROLL.IS.AHA

Posts: 58; Member since: Apr 10, 2012

Are you trying to be like APPLE ROYALLY

posted on Apr 12, 2012, 10:35 PM 1

4. Tsepz_GP

Posts: 1227; Member since: Apr 12, 2012

LOL, at the Microsoft fanboys. Atleast Ballmer knows that no matter what happens he has you guys. :) Excellent results by Google, them, Samsung and Apple seem to be the only ones who understand their market, and its paying off, good on them, Microsoft and Nokia have much to learn.

posted on Apr 12, 2012, 4:07 PM 2

3. strikercho

Posts: 156; Member since: Mar 20, 2012

You are right, but I'm sure that Mr. Larry knows that. But what the fattest lie is: “We have always managed Google for the long term...". :) They will keep Android as long as they can put their commercials in any possible app. If that stops, they'll immediately dump it.

posted on Apr 12, 2012, 3:59 PM 2

2. drahmad

Posts: 480; Member since: Aug 20, 2011

With the launch of windows 8, people will start using apps of news, weather, finance, mail, encyclopaedias, medical info's, social networks and so on... which means something very bad for the search engines and browsers....

posted on Apr 12, 2012, 3:49 PM 6

5. remixfa

Posts: 14605; Member since: Dec 19, 2008

do you realize that most of those apps route through Google to find info? lol

posted on Apr 12, 2012, 4:28 PM 8

6. Tsepz_GP

He doesn't :'D ,all he knows is that he has to convince himself that his favourite company with fav OS will make it, he needs to keep up that hope, lol.

posted on Apr 12, 2012, 4:40 PM 6

8. taco50

Actually not entirely. More and more companies and apps no longer rely on google. Siri is a good example. Wikipedia has stopped using google maps. Facebook is moving away from Google too.

posted on Apr 12, 2012, 5:36 PM 1

15. TROLL.IS.AHA

Do you wana become more like APPLE ROYALLIST!

posted on Apr 12, 2012, 10:37 PM 1

16. drahmad

well. a few. not most. wake up popy.

posted on Apr 13, 2012, 2:47 AM 1

11. protozeloz

Google already has apps for news, weather, fiance, mail, encyclopedia's, medical info, and social networks all of them in the android market or with their services. as you can see Google is moving into other products because they simply foresaw what you are talking about. so I see no loss in them unless something happens in the smartphone world

posted on Apr 12, 2012, 6:38 PM 3

1. drahmad

Be prepared for the shock Larry. Windows 8 is gonna give you some real shock....

posted on Apr 12, 2012, 3:47 PM 6

12. jroc74

They said that about WP7 when it launched...it was gonna take the mobile market by storm!!! Android, look out!!! .............................................................................. Then it was wait til Nokia gets on board. Will give it a few years then see how WP is doing...it would be my next choice after Android tho. I cant get used to the iPhone. Spent a few weeks with one...just not my cup of tea...