Google releases Q1 2012 earnings
This was a big quarter for Google, considering their previous earning were less than stellar, and they managed to revert to their old success. Google's revenue went up 24% to $10.65 billion, which is a huge increase from their $8.58 billion in Q1 of last year. Their net income was $2.9 billion compared to $1.8 billion in Q1 of 2011.
Google also announced a two for one stock split, which means they will cut the stock price in half, but doubling the amount of stock available. They will be doing this by releasing a new class of non-voting stock that will be traded under a separate ticker.
This type of stock split can be used in a large acquisition, that will be paid in stock. Page addressed this during the earnings call. He said, "We don’t have an unusually big acquisition planned, in case you were wondering.” He preempted the analysts predicting another Motorola size acquisition, which likely wouldn't go over well with stock holders.
Co-founders of the company, Sergey Brin and Larry Page, released a letter when the earnings were announced. They said they, “…saw tremendous momentum from the big bets we’ve made in products like Android, Chrome and YouTube. We are still at the very early stages of what technology can do to improve people’s lives and we have enormous opportunities ahead. It is a very exciting time to be at Google.”
Follow the source link to read the full press release and the founder's letter.
[via TechCrunch, AllThingsD]
(Source: Google Q1 Earnings, 2012 Google Founder's Letter)