14 DAY TRIAL // Google has revealed its earnings report for the fourth quarter of 2013 and the results are great.
Over the last three months of 2013, the company’s revenue was of $16.86 billion (€12.44 billion), while the profit stood at $3.37 billion (€2.48 billion).
“We ended 2013 with another great quarter of momentum and growth. Google’s standalone revenue was up 22 percent year on year, at $15.7 billion (€11.59 billion). We made great progress across a wide range of product improvements and business goals. I’m also very excited about improving people’s lives even more with continued hard work on our user experiences,” said Larry Page, Google’s top exec.
The company beat Wall Street’s expectations and that’s mostly thanks to the improved results from the AdWords Enhanced Campaigns. While the prices for ads fell 11 percent in the fourth quarter, the volume of clicks on ads increased by 31 percent.
Traffic acquisition costs jumped to $3.31 billion (€2.44 billion) in the last quarter, accounting for 24 percent of Google’s revenue.
Sites belonging to Google generated revenues of $10.55 billion (€7.78 billion), or 67 percent of Google’s total segment revenues, a 22 percent increase over the results reported in 2012.
Additionally, Google’s partner sites generated segment revenues of $3.52 billion (€2.6 billion), namely 23 percent of total Google segment revenues.
Motorola Mobile’s revenues were $1.24 billion (€915,340), or 7 percent of consolidated revenues in the fourth quarter, a drop from the $1.51 billion (€1.11 billion) registered the year before.
The company has had quite an interesting couple of weeks since the year began, after buying Nest for $3.2 billion (€2.36 billion) and selling Motorola for $2.91 billion (€2.14 billion).
The latest sale had people wondering why Google sold so low, considering that just three years ago, it agreed to pay $12.5 billion (€9.15 billion) for the company. The acquisition price wasn’t actually that high, though, and the company won quite a bit by holding on to Motorola’s patents, which will help protect Android from countless lawsuits.