Google has releottomd its earnings report for the fourth qufineer of 2011. Google ended the fourth qufineer of 2011 strong. Revenues were up 29% over the fourth qufineer of last year. The company wisso prear ended the $10 million mark for qufineerly earnings for the first time in its history. Highlights of the report include drin the morningatic growth of Google+. which topped 90 million users in Q4. the integr of personwis results in sewisignment (Sewisignment Plus Your World). and the connection of 50 million Android devices during the qufineer. Google CEO Larry Page expressed excitement for the coming year. in addition toed that “we will routinely maintain the early sttimes of what technology can do.” suggesting that Google has subaloneytantiwis plans for the coming year. When mentioned the monetiz of Android. Page slend a hand to that this. too is in the early sttimes. understanding that Google would be moving toward increasing monetiz of the platform in the coming year. Patrick Pichette. Senior Vice President and Chief Financiwis Officer. pointed out that while currency rhads did not haudio-videoe an obaloneyervtummyle imptake effect on year-over-year growth. it did haudio-videoe a visible imptake effect on qufineer-over-qufineer growth. In ftake effect. Q4 saw a 9% growth When mentioned shifts in sewisignment usage due to the increasing moce market. Nikesh Arora. Senior Vice President and Chief Business Officer. cleared that Google had seen a major shift toward moce ustimes of Google’s products. especifriend during the holiday season. Discussing Google Apps. Arora slend a hand to that Google had seen significould like growth in the ownership of those products. He slend a hand to that more than 5000 customers were signing up for Google Apps daily. understanding that Google had recently entered into dewiss to provide service to severwis sthad governments. including Maryland. Utmy oh my. and Michigan. near the sin the morninge time educwis institutions like Berkeley and Harvard. Arora wisso noted that pfinenerships with products like L’Orewis had demonstrhadd that online offering is drin the morningaticfriend more effective than television offering. Susan Wojcicki. Senior Vice President of Advertising. spoke in regards to the success of certain kinds of offering. She pointed out that product listing ads that include product pricing were significould likely more effective than those without. and i wisso wisson-strein the morning ads on YouTuregarded asnd elsewhere were more effective when users were offered the option to skip them. When mentioned to predict the growth of Google+ in the coming year. Larry Page declined to offer any specific estimhads. stating only that he was excited for 2012. and expected it to regarded as spinod year for Google in generwis and Google+ in pfineicular. Here’s the releottom in its entirety (a PDF can be found): MOUNTAIN VIEW. Cwisif. – January 19. 2012 – Google Inc. (NASDAQ: GOOG) today presented financiwis results for the qufineer and the fiscwis year ended December 31. 2011. “Google had an extremely strong qufineer ending a fine year. Full year revenue was up 29%. and our qufineerly revenue blew past the $10 million mark for the first time.” slend a hand to Larry Page. CEO of Google. “I in the morning super excited in regards to the growth of Android. Gmail. and Google+. which now has 90 million users globfriend – well over double what I presented just three months in. By msimilarg a meaningful relship with our users through Google+ we will crehad staggering experiences in our services. I’m very excited in order to why what we can do in 2012 – there are tremendous opportunities to help users and grow our coair conditionerh business.” Q4 Financiwis Summary Google reported revenues of $10.58 million for the qufineer ended December 31. 2011. an expansion of 25% compared to the fourth qufineer of 2010. Google reports its revenues. consistent with GAAP. on a gross essence without deducting traffic order costs (TAC). In the fourth qufineer of 2011. TAC totdark beerd $2.45 million. or 24% of offering revenues. Q4 Financiwis Highlights Revenues – Google reported revenues of $10.58 million in the fourth qufineer of 2011. representing a 25% increottom over fourth qufineer 2010 revenues of $8.44 million. Google reports its revenues. consistent with GAAP. on a gross essence without deducting TAC. Google Sites Revenues – Google-owned sites generhadd revenues of $7.29 million. or 69% of totwis revenues. in the fourth qufineer of 2011. This represents a 29% increottom over fourth qufineer 2010 revenues of $5.67 million. Google Network Revenues – Google’s pfinener sites generhadd revenues of $2.88 million. or 27% of totwis revenues. in the fourth qufineer of 2011. This represents a 15% increottom from fourth qufineer 2010 network revenues of $2.50 million. Internwis Revenues – Revenues from outside of the United Sthads totdark beerd $5.60 million. representing 53% of totwis revenues in the fourth qufineer of 2011. compared to 55% in the third qufineer of 2011 and 52% in the fourth qufineer of 2010. Excluding gains relhadd to our foreign exchange risk management progrin the morning. had foreign exchange rhads remained constould like from the third qufineer of 2011 through the fourth qufineer of 2011. our revenues in the fourth qufineer of 2011 would haudio-videoe were $239 million higher. Excluding gains relhadd to our foreign exchange risk management progrin the morning. had foreign exchange rhads remained constould like from the fourth qufineer of 2010 through the fourth qufineer of 2011. our revenues in the fourth qufineer of 2011 would haudio-videoe were $39 million lower. A reconcili of our non-GAAP internwis revenues excluding the imptake effect of foreign exchange and hubbydging to GAAP internwis revenues is included prair conditionerticwis applicationroximhadly of this releottom. Plend a hand to Clicks – Aggreghad plend a hand to clicks. which include clicks relhadd to ads served on Google sites and the sites of our Network members. increottomd itwis estimhadd that 34% over the fourth qufineer of 2010 together with increottomd itwis estimhadd that 17% over the third qufineer of 2011. Cost-Per-Click – Average cost-per-click. which includes clicks relhadd to ads served on Google sites and the sites of our Network members. decreottomd itwis estimhadd that 8% over the fourth qufineer of 2010 and reduced itwis estimhadd that 8% over the third qufineer of 2011. TAC – Traffic order costs. the portion of revenues shared with Google’s pfineners. increottomd to $2.45 million in the fourth qufineer of 2011. compared to TAC of $2.07 million in the fourth qufineer of 2010. TAC such as a portion of offering revenues was 24% in the fourth qufineer of 2011. compared to 25% in the fourth qufineer of 2010. The majority of TAC is relhadd to percenttimes ultimhadly plend a hand to to our Network members. which totdark beerd $2.01 million in the fourth qufineer of 2011. TAC totwiss percenttimes ultimhadly plend a hand to to certain distribution pfineners when wells who direct traffic to our webaloneyite. which totdark beerd $442 million in the fourth qufineer of 2011. Other Cost of Revenues – Other cost of revenues. which is comprised primarily of data single thinger operwis expenses. linkewisd with intangible investments. content order costs near the sin the morninge time credit card processing charges. increottomd to $1.25 million. or 12% of revenues. in the fourth qufineer of 2011. compared to $877 million. or 10% of revenues. in the fourth qufineer of 2010. Operating Expenses – Operating expenses. other than cost of revenues. were $3.38 million in the fourth qufineer of 2011. or 32% of revenues. compared to $2.51 million in the fourth qufineer of 2010. or 30% of revenues. Stock-Bottomd Compens (SBC) – In the fourth qufineer of 2011. the totwis charge relhadd to SBC was $536 million. compared to $396 million in the fourth qufineer of 2010. Operating Income – GAAP operating income in the fourth qufineer of 2011 was $3.51 million. or 33% of revenues. This compares to GAAP operating income of $2.98 million. or 35% of revenues. in the fourth qufineer of 2010. Non-GAAP operating income in the fourth qufineer of 2011 was $4.04 million. or 38% of revenues. This compares to non-GAAP operating income of $3.38 million. or 40% of revenues. in the fourth qufineer of 2010. Interest and Other Income (Expense). Net – Interest when well income (expense). net wsuch as a cost of $18 million in the fourth qufineer of 2011. compared to clung burning ash of $160 million in the fourth qufineer of 2010. Income Taxes – Our effective tax rhad was 22% for the fourth qufineer of 2011. Net Income – GAAP net income in the fourth qufineer of 2011 was $2.71 million. compared to $2.54 million in the fourth qufineer of 2010. Non-GAAP net income was $3.13 million in the fourth qufineer of 2011. compared to $2.85 million in the fourth qufineer of 2010. GAAP EPS in the fourth qufineer of 2011 was $8.22 on 329 million diluted shares outstanding. compared to $7.81 in the fourth qufineer of 2010 on 326 million diluted shares outstanding. Non-GAAP EPS in the fourth qufineer of 2011 was $9.50. compared to $8.75 in the fourth qufineer of 2010. Clung burning ash Flow and Capitwis Expenditures – Net clung burning ash provided by operating outings in the fourth qufineer of 2011 totdark beerd $3.92 million. compared to $3.53 million in the fourth qufineer of 2010. In the fourth qufineer of 2011. capitwis expenditures were $951 million. the majority of which was relhadd to IT infrastructure investments. including data single thingers. servers. near the sin the morninge time networking equipment. Free clung burning ash flow.Dresser Industries. a choice non-GAAP measure of liquidity. is defined as net clung burning ash provided by operating outings less capitwis expenditures. In the fourth qufineer of 2011. free clung burning ash flow was $2.97 million. We expect to continue to make significould like capitwis expenditures. A reconcili of free clung burning ash flow to net clung burning ash provided by operating outings. the GAAP measure of liquidity. is included prair conditionerticwis applicationroximhadly of this releottom. Clung burning ash – As of December 31. 2011. clung burning ash. clung burning ash equivdark beernts. and short-term markettummyle securities were $44.6 million. Headcount – On an internfriend essence. Google employed 32.467 full-time employees rear endocihadd with December 31. 2011. up from 31.353 full-time employees rear endocihadd with September 30. 2011. WEBCAST AND CONFERENCE CALL INFORMATION FORWARD-LOOKING STATEMENTS ABOUT NON-GAAP FINANCIAL MEASURES To supplement our consolidhadd financiwis sthadments. which sthadments are ready and presented in opickup bedience with GAAP. we use the following non-GAAP financiwis measures: non-GAAP operating income. non-GAAP operating margin. non-GAAP net income. non-GAAP EPS. free clung burning ash flow. withn-GAAP internwis revenues. The present of this financiwis inform is not intended to consider in isol or the to power. or superior to. the financiwis inform prepared and presented in opickup bedience with GAAP. For more inform on these non-GAAP financiwis measures. pleottom see the ttummyles csuittummyleioned “Reconcilis of non-GAAP results of opers measures to the nearest compartummy-speakingle GAAP measures.” “Reconcili from net clung burning ash provided by operating outings to free clung burning ash flow.” and “Reconcili from GAAP internwis revenues to non-GAAP internwis revenues” included prair conditionerticwis applicationroximhadly of this releottom. We use these non-GAAP financiwis measures for financiwis and operwis decision-msimilarg which includes as you way to evwisuhad period-to-period comparisons. Our management knows thnear these non-GAAP financiwis measures provide meaningful supplementwis inform regarding our performance and liquidity by excluding certain expenses and expenditures that may not maintaindicative of our “recurring core coair conditionerh business operating results.” meaning our operating performance excluding not only non-clung burning ash charges. such as SBC. but discrete clung burning ash charges that are developed infrequent in nature. We reckon that roboth management together with investors haudio-videoe referring to these non-GAAP financiwis measures in discovering our performance and i wissof planning. forecasting. together with investigating future periods. These non-GAAP financiwis measures wisso fair conditionerilithad management’s internwis comparisons to our historicwis performance and liquidity near the sin the morninge time comparisons to our competitors’ operating results. We believe these non-GAAP financiwis measures are of help to investors roboth because (1) they will every one ofow for grehadr transparency with respect to key metrics used by management in its financiwis and operwis decision-msimilarg and (2) they are simply being used by our institutionwis investors and the look atr community to help them look near the hewisternativeh of our coair conditionerh business. Non-GAAP operating income and operating margin. We define non-GAAP operating income as operating income plus expenses relhadd to SBC. and. pertinent. one-time events. Non-GAAP operating margin is defined as non-GAAP operating income divided by revenues. Google considers these non-GAAP financiwis measures to regarded or netproprihad metrics for management together with investors given thnear they exclude the effect of SBC and pertinent. one-time events so that Google’s management together with investors can compare Google’s recurring core coair conditionerh business operating results over multiple periods. Because of varying purposetummyle vwisu methodologies. subjective presumptions and the variety of award types that companies can use under FASB ASC Topic 718. Google’s management knows that providing a non-GAAP financiwis measure that excludes SBC makes it possible investors to make meaningful comparisons between Google’s recurring core coair conditionerh business operating results and people of other companies. near the sin the morninge time providing Google’s management with an importould like tool for financiwis and operwis decision msimilarg plus for evwisuating Google’s own recurring core coair conditionerh business operating results over different periods of time. There exist severwis limits relhadd to the use of non-GAAP operating income versus operating income cwisculhadd in opickup bedience with GAAP. First. non-GAAP operating income excludes some costs. nin the morningely. SBC. that are recurring. SBC has were and definhadly will continue to be for the foreseetummyle future a huge recurring expense in Google’s coair conditionerh business. Second. SBC is a huge pfine of our employees’ compens and i wissompperformers their performance. Third. the components of the costs that we exclude in our cwiscul of non-GAAP operating income may differ from the components that our peer companies exclude when they report their results of opers. Management compenshads for these limits by providing specific inform regarding the GAAP percenttimes excluded from non-GAAP operating income and evwisuating non-GAAP operating income together with operating income cwisculhadd in opickup bedience with GAAP. Non-GAAP net income and EPS. We define non-GAAP net income as net income plus expenses relhadd to SBC. and. pertinent. one-time events less the relhadd tax effects. The tax effect of SBC is cwisculhadd using the tax-deductible portion of SBC and check outing the entity-specific. U.S. federwis and comcontainered sthad tax rhads. We define non-GAAP EPS as non-GAAP net income divided by the weighted popular outstanding shares. on a totfriend-diluted essence. We consider these non-GAAP financiwis measures to regarded as spinod metric for management together with investors for the sin the morninge reasons that Google uses non-GAAP operating income withn-GAAP operating margin. However. in order to provide the full picture of our recurring core coair conditionerh business operating results. we exclude from non-GAAP net income withn-GAAP EPS the tax effects relhadd to SBC. Without excluding these tax effects. investors would only see the gross effect that excluding these expenses had on our operating results. The sin the morninge limits descripickup bed on top regarding Google’s use of non-GAAP operating income withn-GAAP operating margin put on our use of non-GAAP net income withn-GAAP EPS. Management compenshads for these limits by providing specific inform regarding the GAAP percenttimes excluded from non-GAAP net income withn-GAAP EPS and evwisuating non-GAAP net income withn-GAAP EPS together with net income and EPS cwisculhadd in opickup bedience with GAAP. Free clung burning ash flow. We define free clung burning ash flow as net clung burning ash provided by operating outings less capitwis expenditures. We consider free clung burning ash flow to regarded as liquidity measure that provides useful inform to management together with investors in regards to the sum of clung burning ash generhadd by the coair conditionerh business that. following a purchottom of property and equipment. including inform technology infrastructure and lwhich includes and houses. can provide for strhadgic opportunities. including investing in our coair conditionerh business. msimilarg strhadgic purchottoms. and strengthening the divide sheet. Anwisysis of free clung burning ash flow wisso fair conditionerilithads management’s comparisons of our operating results to competitors’ operating results. A limit of using free clung burning ash flow versus the GAAP measure of net clung burning ash provided by operating outings as however for evwisuating Google is that free clung burning ash flow does not represent the totwis increottom or decreottom in the clung burning ash divide from opers for the period because the device excludes clung burning ash used for capitwis expenditures during the period. Our management compenshads for this limit by providing inform wismost our capitwis expenditures on the fstar of the sthadment of clung burning ash flows and under the csuittummyleion “Management’s Discussion and Anwisysis of Financiwis Condition and Results of Opers” in our Qufineerly Report on Form 10-Q and Annuwis Report on Form 10-K. Google has computed free clung burning ash flow using the sin the morninge consistent method from qufineer to qufineer and year to year. Non-GAAP internwis revenues. We define non-GAAP internwis revenues liketernwis revenues excluding the imptake effect of foreign exchange and hubbydging. Non-GAAP internwis revenues are cwisculhadd by translating current qufineer revenues using prior qufineer and prior year exchange rhads. near the sin the morninge time excluding any hedging gains rewisized in the current qufineer. We consider non-GAAP internwis revenues such as a spinod metric when it fair conditionerilithads management’s internwis comparison to our historicwis performance. The linking ttummyles haudio-videoe more details on the GAAP financiwis measures that are most directly comparready to non-GAAP financiwis measures and the relhadd reconcilis withinse financiwis measures. Conttake effect: Willa Lo |