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Google hits $50 billion milestone in 2012

Google enjoyed a strong performance in the final fiscal quarter of 2012, reporting a revenue growth of 36 per cent from the corresponding period in 2011, earning it $14.4 billion (£9.1 billion).This bumps its year-end total to $50.2 billion (£31.7 billion), prompting a further 5 per cent boost to its share price.

“We ended 2012 with a strong quarter,” said Larry Page, CEO of Google.

“Revenues were up 3 per cent year-on-year, and 8 per cent quarter-on-quarter. And we hit $50 billion in revenues for the first time last year – not a bad achievement in just a decade and a half. In today’s multi-screen world we face tremendous opportunities as a technology company focused on user benefit. It’s an incredibly exciting time to be at Google.”

Advertising maintained its position as the search firm’s primary revenue stream, generating 89 per cent of its quarterly haul. That’s a 22 per cent year-on-year increase, which comes despite a 6 per cent drop in Google’s average cost-per-click metric, signifying a reduction in the amount advertisers pay the search leader.

Moreover, this will be the fifth consecutive quarter in which ad rates have fallen, though it’s still an improvement over the previous quarter which recorded a 15 per cent decline.

2012 acquisition Motorola Mobility provided another sour note to Google’s report, recording a revenue loss of 23 per cent as operating costs proved too severe for profit gains to be feasible.

Image credit: Flickr (Kalexanderson)