Google just announced its record-breaking fourth-quarter earnings and, within minutes of reporting, the Mountain View, Calif.-based Company dropped a whopping 10 percent in early-after hours trading due to missed expectations.
Google missed analyst expectations for earnings per share during Q4 2011 and its stock immediately plummeted. Analysts predicted the company would produce $10.49 in non-GAAP earnings per share, but it only amounted to $9.50 in earnings per share (versus $8.75 in the Q4 2010).
Nevertheless, the earnings’ upswing surpassed the $9.72 billion revenue reported in Q3 2011. Google revenue hit a record $10.58 billion in Q4 2011, before deducting traffic acquisition costs, which is a 25 percent increase from $8.44 billion a year earlier. Profit also grew to $2.71 billion, compared to $2.54 billion in the Q4 2010.
“Google had a really strong quarter ending a great year. Full year revenue was up 29 percent, and our quarterly revenue blew past the $10 billion mark for the first time,” said Larry Page, CEO of Google, in a press release.
Android, Gmail, and Google+ are also growing. The new social network reached 90 million users globally, which is “well over double what I announced just three months ago,” Page explained. The CEO also announced today that Google saw 250 million Android device activations, and over 11 billion apps downloaded from the Android Market.
“I’m very excited about what we can do in 2012 – there are tremendous opportunities to help users and grow our business,” Page said.
Although Google did not meet analysts’ expectations, the company is trumpeting its first $10 billion quarter.
The Q4 2011 financial summary and highlights are detailed below.