Google Reports $13 Billion in Q1 2013 Revenues


Google posted a 31 percent increase in year-over-year revenue for the first quarter of 2013.

The search giant reported revenues of $13.97 billion for Q1 2013. As revenues rise year-over-year, company CEO Larry Page put the focus on future products and Google’s growth potential.

Paid clicks grew 20 percent vs. Q1 2012 and 4 percent vs. Q4 2012, while the average cost-per-click fell 4 percent compared to both Q1 and Q4 2012. During the earnings call, Google revealed that more than 1.5 million AdWords campaigns have migrated from legacy to enhanced.

Not including figures from the firm’s recent Motorola acquisition, Google earned over $12 billion for the quarter. Google reported that its Q1 operating income was over $3 billion.

In total, operating income made up about 25 percent of revenues. In comparison, operating income made up about 32 percent of revenues in the same quarter last year.

Google sites made up about 67 percent of total revenue. Sites made over $8 billion in revenue during the first quarter of 2013. The figure represented an 18 percent increase from Q1 2012.

Google networks also made a lion shares of Google overall revenues for the quarter. It was reported that Google networks made up 25 percent of total company revenue. In total, Google networks made over $3 billion in revenue for the quarter. A 12 percent increase year-over-year.

Motorola, Google’s major acquisition from last year, failed to make much of a dent for the quarter. The smartphone maker earned the search giant a little over $1bn for the quarter.

“We continue to be very pleased with the progress with Motorola Mobility,” said Google’s chief financial officer Patrick Pichette. “We are very pleased with the progress but I must remind everyone that growth will continue to be slow.”

During the company’s call with investors, Page put the focus on future products. He highlighted the firm’s commitment to developing products that may not hold much value in the near term.

“As [chief executive officer] it’s important to not get comfortable. A big part of my job is to get involved in things that are not just incremental,” said Page during the call. “Companies tend to get comfortable doing what they’ve always done. It’s only natural to work on the things you know. [However,] minor changes make things obsolete.”

Page held steadfast to Google’s philosophy of investing in products for the future. Specifically, he highlighted Google’s efforts in developing self-driving cars, Google Fiber, and Google Glass.

“I get chills when I use something for the future and I get chills when I use Google Glass,” continued Page.

Google’s chief financial officer also said that mobile will continue to be a major growth business for Google going forward. Pichette said that the multi-screen world of today offers Google many advertising opportunities going forward.

“It’s really about the new reality of multi-screen. It’s about this new unified life with multiple screens throughout your day,” said Pichette. “This trend represents an enormous opportunity for us.”

Speaking on ads, Google’s founder reminded investors why Google has been so successful at monetizing ads. During the earnings call Page said the secret is to think of ads as information the public wants to see.

“We have been doing this for a long time the reason we are such a success at advertising is because we view ads as information,” Page said. “Our search ads have to be very specific to what you are looking for.”

Google ads have been the company’s lifeblood since the beginning. The firm has continued to see a large portion of its profits come from advertisements found in its products.

This article was originally published on V3.

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