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Google’s Q3 2013 Earnings: $14.9 Billion Revenue, $3.64 Billion Net Income

October 17, 2013 - Written By Alexander Maxham

Starting today, we’re going to see a lot of financial numbers coming from many of the companies. Which usually brings good and bad news to companies. This morning we saw that Verizon made $30 million and added 1.1 million new customers in Q3. Seems like every quarter they add another million. Now it’s Google’s turn (and probably Motorola’s in a few minutes).

Google is releasing their numbers right now, as I’m typing up this post. They are announcing $10.74 per share on consolidated revenue of $14.9 billion. Compared to the 19% year-over-year growth with $14.11 billion in revenue they reported last quarter. Along with the $14.10 billion in revenue they reported in this quarter last year. It’s slightly higher than the average of around $14.80 billion in revenue and $10.35 per share Wall Street was expecting.

Google had another strong quarter with $14.9 billion in revenue and great product progress,” said Larry Page, CEO of Google.  “We are closing in on our goal of a beautiful, simple, and intuitive experience regardless of your device.”

Additional numbers include:

  • GAAP operating income in the third quarter of 2012 was $2.74 billion, or 19% of revenues. This compares to GAAP operating income of $3.06 billion, or 31% of revenues, in the third quarter of 2011. Non-GAAP operating income in the third quarter of 2012 was $3.80 billion, or 27% of revenues. This compares to non-GAAP operating income of $3.63 billion, or 37% of revenues, in the third quarter of 2011.

  • GAAP net income in the third quarter of 2012 was $2.18 billion, compared to $2.73 billion in the third quarter of 2011. Non-GAAP net income in the third quarter of 2012 was $3.01 billion, compared to $3.18 billion in the third quarter of 2011.

  • GAAP EPS in the third quarter of 2012 was $6.53 on 333 million diluted shares outstanding, compared to $8.33 in the third quarter of 2011 on 327 million diluted shares outstanding. Non-GAAP EPS in the third quarter of 2012 was $9.03, compared to $9.72 in the third quarter of 2011.

  • Non-GAAP operating income and non-GAAP operating margin exclude stock-based compensation (SBC) expense, as well as restructuring and related charges recorded in our Motorola business.  Non-GAAP net income and non-GAAP EPS exclude the expenses noted above, net of the related tax benefits. In the third quarter of 2012, the expense related to SBC and the related tax benefits were $715 million and $155 million compared to $571 million and $116 million in the third quarter of 2011.  In the third quarter of 2012, restructuring and related charges recorded in our Motorola business were $349 million, and the related tax benefits were $76 million.

And as far as the break down goes, about 82% of their revenue came from advertising. Guess Google really is all about the ads still. International revenue was around $6.11 billion. So all in all, it’s looking good for Google. But then again we didn’t expect them to lose much money or make less than last quarter.