Google Beats In Q2 2012: Revenue Up 35 Percent To $12.21B, $2.79B In Net Income

Google just announced its second quarter 2012 earnings this afternoon, reporting revenues of $12.21 billion, an increase of 35% from the first quarter ending March 31, which saw revenues of $10.65 billion. Minus traffic acquisition costs, Google pulled in $9.61 billion in revenue. Non-GAAP EPS in the quarter was $10.12. GAAP net income in the second quarter of 2012 was $2.79 billion, compared to $2.51 billion in the second quarter of 2011. Non-GAAP net income in the second quarter of 2012 was $3.35 billion, compared to $2.85 billion in the second quarter of 2011.

Google was expected to report double-digit gains in both revenue and earnings, along with its first period results from its acquisition of Motorola Mobility. Consensus forecasts pegged Google to report adjusted earnings of $10.05 per share and revenues of $8.4 billion, excluding traffic costs.

Since the last earnings report, investors had been pressuring shares down 7% since mid-April, mainly due to concerns about trends in the company’s advertising business. As of this morning, shares had remained down 10% year-to-date.

Analysts were also looking to see more info regarding the Motorola acquisition. Google bought Motorola Mobility last year for $12.5 billion. The assets and liabilities of Motorola were included in Google Inc.’s Consolidated Balance Sheet as of June 30, 2012, and the operating results of Motorola were included in Google Inc.’s Consolidated Statement of Income from the acquisition date through June 30, 2012. CFO Patrick Pichette noted, “We can expect Motorola to continue to show some accounting variability, as is typical with the closing of such large transactions.”

Revenue from Google-owned sites was $7.54 billion, or 69% of Google revenues, in the second quarter of 2012. This represents a 21% increase over second quarter 2011 Google sites revenues of $6.23 billion.

“Google standalone had a strong quarter with 21% year-on-year revenue growth, and we launched a bunch of exciting new products at I/O – in particular the Nexus 7 tablet, which has received rave reviews,” said Larry Page, CEO of Google. “This quarter is also special because Motorola is now part of the Google family, and we’re excited about the potential to build great devices for users.”

Details from the earnings call will follow. Larry Page is not expected to be on, because he “lost his voice,” (which is hopefully not a side effect of Google Glass).