Google has announced financial results for the quarter and fiscal year ended 31 December 2013.
“We ended 2013 with another great quarter of momentum and growth. Google’s standalone revenue was up 22% year on year, at $15,7-billion,” says Larry Page, CEO of Google. “We made great progress across a wide range of product improvements and business goals. I’m also very excited about improving people’s lives even more with continued hard work on our user experiences.”
The board of directors has approved a distribution of shares of the class C capital stock as a dividend to our stockholders with a dividend record date of 27 March 2014 and a dividend payment date of 2 April 2014.
For the fourth quarter, ended 31 December, Google reported consolidated revenues of $16,86-billion, an increase of 17% compared to the fourth quarter of 2012. Google reports advertising revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs (TAC). In the fourth quarter of 2013, TAC totaled $3,31-billion, or 24% of advertising revenues.
Operating income, operating margin, net income, and earnings per share (EPS) are reported on a GAAP and non-GAAP basis.
GAAP operating income in the fourth quarter of 2013 was $3,92-billion, or 23% of revenues. This compares to GAAP operating income of $3,39-billion, or 24% of revenues, in the fourth quarter of 2012. Non-GAAP operating income in the fourth quarter of 2013 was $4,84-billion, or 29% of revenues. This compares to non-GAAP operating income of $4,27-billion, or 30% of revenues, in the fourth quarter of 2012.
GAAP net income, including net loss from discontinued operations, in the fourth quarter of 2013 was $3,38-billion, compared to $2.89 billion in the fourth quarter of 2012. Non-GAAP net income in the fourth quarter of 2013 was $4,1-billion, compared to $3,57-billion in the fourth quarter of 2012.
GAAP EPS, including impact from net loss from discontinued operations, in the fourth quarter of 2013 was $9.90 on 341 million diluted shares outstanding, compared to $8.62 in the fourth quarter of 2012 on 335-million diluted shares outstanding. Non-GAAP EPS in the fourth quarter of 2013 was $12.01, compared to $10.65 in the fourth quarter of 2012.
Non-GAAP operating income and non-GAAP operating margin exclude stock-based compensation (SBC) expense, as well as restructuring and related charges. Non-GAAP net income and non-GAAP EPS exclude the expenses noted above, net of the related tax benefits, as well as net loss from discontinued operations. In the fourth quarter of 2013, the expense related to SBC and the related tax benefits were $902-million and $191-million compared to $700-million and $152-million in the fourth quarter of 2012. In the fourth quarter of 2013, restructuring and related charges and the related tax benefits were $15-million and $11-million, compared to $178-million and $65-million in the fourth quarter of 2012. In addition, net loss from discontinued operations in the fourth quarter of 2013 was $5-million, compared to $21-million in the fourth quarter of 2012.
Google segment revenues were $15,72-billion, or 93% of consolidated revenues, in the fourth quarter of 2013, representing a 22% increase over fourth quarter 2012 Google segment revenues of $12.91 billion.
