As of this writing, Class A shares of Google were down 2.12% to $502.25 per share
Google released the earnings results from its most recently completed quarter tonight, posting adjusted earnings of $6.88 per share on revenue of $18.1 billion, a 15% increase. Analysts had been expecting the search giant to report earnings of $7.12 per share on $14.45 billion in revenue.
Key metrics from Google’s earnings report
For the full year, Google posted revenue of $66 billion, a 19% increase year over year.
There's a gold rush coming as electric vehicle manufacturers fight for market share, proclaimed David Einhorn at this year's 2021 Sohn Investment Conference. Check out our coverage of the 2021 Sohn Investment Conference here. Q1 2021 hedge fund letters, conferences and more SORRY! This content is exclusively for paying members. SIGN UP HERE If you Read More
GAAP net income for the fourth quarter was $4.76 billion or $6.91 per share. That includes results from Google’s discontinued operations, which was the Motorola Mobility division. That’s compared to 2013’s $3.38 billion or $4.95 per share. GAAP operating income was 24% of revenues or $4.4 billion, compared to last year’s $4.32 billion or 28% or revenue. Non-GAAP operating income was $5.6 billion or 31% of revenue, compared to last year’s $5.3 billion or 34% of revenues.
Google closed the sale of Motorola Mobility to Lenovo on Oct. 29.
Google’s earnings by segment
Sites revenues rose 18% to $12.43 billion, making up 69% of Google’s total revenues. Network revenues rose 6% year over year to $3.72 billion, making up 20% of total revenue. Other revenues made up the remaining 11% and rose 19% to $1.95 billion for the quarter. The search giant saw 56% of its revenues from outside the U.S.
Google reported a 14% increase in paid clicks in the quarter. Sites paid clicks rose 25%. Cost per click fell 3% year over year and 3% quarter over quarter. Cost per click for Google Sites fell 8%. Network cost per click rose 6%.
Traffic acquisition costs during the quarter were 22% or ad revenues or $3.62 billion, compared to $3.31 billion and 24% of revenues in the same quarter a year ago. Other cost of revenues rose to $3.3 billion or 18% of revenues. Operating expenses rose from $5.03 billion in 2013’s fourth quarter to $6.78 billion in 2014’s fourth quarter. Expenses were 37% of revenues, compared to 32% of revenues in the same quarter a year ago.