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Google Reports $10.65 Billion in Q1 2012 Revenue, Proposes New Class of Stock

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Google revenues topped $10 billion for the second quarter in a row, coming in only slightly higher than their Q4 2011 $10.58 billion. The Q1 2012 $10.65 billion in revenue is a new record and reflects a 24 percent increase over the same quarter last year.

Google 2012 Earnings

In their pre-earnings call press release, Google also announced that their board has unanimously approved a stock dividend proposal “designed to preserve the corporate structure that has allowed Google to remain focused on the long term.”

CEO Larry Page and co-founder Sergey Brin explain how the two-for-one stock split will work in a Founder’s Letter released alongside the press release. They take pains to quell potential fears over changes in governance:

“It’s important to bear in mind that this proposal will only have an effect on governance over the very long term. In fact, there’s no particular urgency to make these changes now—we don’t have an unusually big acquisition planned, in case you were wondering. It’s just that since we know what we want to do, there’s no reason to delay the decision. Also note that there will be no immediate change in votes, because everyone will still have the same number.”

The new class is a non-voting stock and will be listed on NASDAQ. The shares will be distributed via a stock dividend to existing shareholders; it is essentially a stock split, so each investor will have double the number of shares. In their Founder’s Letter, Page and Brin say this is something investors have long asked for.

Here's a quick break down of the Q1 numbers:

Google Sites Revenues

Google-owned sites generated revenues of $7.31 billion, or 69% of total revenues, in the first quarter of 2012. This represents a 24% increase over first quarter 2011 revenues of $5.88 billion.

Google Network Revenues

Google’s partner sites generated revenues of $2.91 billion, or 27% of total revenues, in the first quarter of 2012. This represents a 20% increase from first quarter 2011 network revenues of $2.43 billion.

International Revenues

Revenues from outside of the United States totaled $5.77 billion, representing 54% of total revenues in the first quarter of 2012, compared to 53% in the fourth quarter of 2011 and 53% in the first quarter of 2011.

Revenues from the United Kingdom totaled $1.15 billion, representing 11% of revenues in the first quarter of 2012, compared to 11% in the first quarter of 2011.

Paid Clicks

Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our Network members, increased approximately 39% over the first quarter of 2011 and increased approximately 7% over the fourth quarter of 2011.

Cost-Per-Click

Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our Network members, decreased approximately 12% over the first quarter of 2011 and decreased approximately 6% over the fourth quarter of 2011.

Cash

As of March 31, 2012, cash, cash equivalents, and short-term marketable securities were $49.3 billion.

Employees

Worldwide, Google employed 33,077 full-time employees as of March 31, 2012, up from 32,467 full-time employees as of December 31, 2011.

We’ll continue updating you on the earnings call in the Comments of this post.


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