Google reported consolidated revenues of US$16.86 billion for the quarter ended 31 December, an increase of 17% compared to the fourth quarter of 2012. Annual revenues were US$57.86 billion.
Operating income (profit) in the fourth was US$3.92 billion, or 23% of revenues compared to $3.39 billion, or 24% of revenues, in the fourth quarter of 2012. Revenues were roughly 50:50 inside and outside if the US.
The revenue growth was higher than expected, but the slightly lower profit margin was regarded by some as a worrying sign. Paid clicks rose 31%. But cost per click (CPC) fell by 11%. Lots of people are clicking on Google ads, but the ads are declining in value.
Google also announced that its shares, now trading at a near record US$1181, will be split in April. "Google is just taking a dime and making it two nickels, but some investors do trade on stock splits like this," said Colin Gillis, an analyst at BGC Partners, quoted in USA Today. "There's a school of thought that splits like this make the stock more affordable for some investors."