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Google Reports Early: Huge Miss Sends Stock Plunging

Tyler Durden's picture




 

Google is down over 8% as it reported earnings early and surprised to the downside...

  • GOOGLE 3Q REV. EX TAC $11.33B, EST. $11.83B           
  • GOOGLE 3Q ADJ. EPS $9.03, EST. $10.65
  • Q3 REVENUE EX-TAC $11.33 BLN VS EXP. $11.83 BN
  • Q3 NETWORK REVENUE USD 3.13 BLN

Highlights from the Edgar-filed 8K (more here):

  • GAAP operating income in the third quarter of 2012 was $2.74 billion, or 19% of revenues. This compares to GAAP operating income of $3.06 billion, or 31% of revenues, in the third quarter of 2011. Non-GAAP operating income in the third quarter of 2012 was $3.80 billion, or 27% of revenues. This compares to non-GAAP operating income of $3.63 billion, or 37% of revenues, in the third quarter of 2011.
  • GAAP net income in the third quarter of 2012 was $2.18 billion, compared to $2.73 billion in the third quarter of 2011. Non-GAAP net income in the third quarter of 2012 was $3.01 billion, compared to $3.18 billion in the third quarter of 2011.
  • GAAP EPS in the third quarter of 2012 was $6.53 on 333 million diluted shares outstanding, compared to $8.33 in the third quarter of 2011 on 327 million diluted shares outstanding. Non-GAAP EPS in the third quarter of 2012 was $9.03, compared to $9.72 in the third quarter of 2011.
  • Non-GAAP operating income and non-GAAP operating margin exclude stock-based compensation (SBC) expense, as well as restructuring and related charges recorded in our Motorola business. Non-GAAP net income and non-GAAP EPS exclude the expenses noted above, net of the related tax benefits. In the third quarter of 2012, the expense related to SBC and the related tax benefits were $715 million and $155 million compared to $571 million and $116 million in the third quarter of 2011. In the third quarter of 2012, restructuring and related charges recorded in our Motorola business were $349 million, and the related tax benefits were $76 million.
  • Google Revenues (advertising and other) – Google revenues were $11.53 billion, or 82% of consolidated revenues, in the third quarter of 2012, representing a 19% increase over third quarter 2011 revenues of $9.72 billion.
    • Google Sites Revenues – Google-owned sites generated revenues of $7.73 billion, or 67% of total Google revenues, in the third quarter of 2012. This represents a 15% increase over third quarter 2011 Google sites revenues of $6.74 billion.
    • Google Network Revenues – Google’s partner sites generated revenues of $3.13 billion, or 27% of total Google revenues, in the third quarter of 2012. This represents a 21% increase from third quarter 2011 Google network revenues of $2.60 billion.
  • Google International Revenues – Google revenues from outside of the United States totaled $6.11 billion, representing 53% of total Google revenues in the third quarter of 2012, compared to 54% in the second quarter of 2012 and 55% in the third quarter of 2011.
  • Foreign Exchange Impact on Google Revenues – Excluding gains related to our foreign exchange risk management program, had foreign exchange rates remained constant from the second quarter of 2012 through the third quarter of 2012, our Google revenues in the third quarter of 2012 would have been $136 million higher. Excluding gains related to our foreign exchange risk management program, had foreign exchange rates remained constant from the third quarter of 2011 through the third quarter of 2012, our Google revenues in the third quarter of 2012 would have been $557 million higher.
    • Google revenues from the United Kingdom totaled $1.22 billion, representing 11% of Google revenues in the third quarter of 2012, compared to 11% in the third quarter of 2011.
    • In the third quarter of 2012, we recognized a benefit of $62 million to Google revenues through our foreign exchange risk management program, compared to $1 million in the third quarter of 2011.
  • Reconciliations of our non-GAAP international revenues excluding the impact of foreign exchange and hedging to GAAP international revenues are included at the end of this release.
  • Paid Clicks – Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our Network members, increased approximately 33% over the third quarter of 2011 and increased approximately 6% over the second quarter of 2012.
  • Cost-Per-Click – Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our Network members, decreased approximately 15% over the third quarter of 2011 and decreased approximately 3% over the second quarter of 2012.
  • TAC – Traffic acquisition costs, the portion of revenues shared with Google’s partners, increased to $2.77 billion in the third quarter of 2012, compared to $2.21 billion in the third quarter of 2011. TAC as a percentage of advertising revenues was 26% in the third quarter of 2012, compared to 24% in the third quarter of 2011.

Stock in freefall:

EDGAR page showing result detail:

 

 

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Thu, 10/18/2012 - 12:41 | 2901397 Calidreaming
Calidreaming's picture

Down  Down down    and take that AAPL pos with you

Thu, 10/18/2012 - 12:43 | 2901412 Stoploss
Stoploss's picture

Shit must be running down the legs of the faceplant boyz right about now.

Thu, 10/18/2012 - 12:53 | 2901465 vast-dom
vast-dom's picture

how anyone thought google was ever worth anywhere near even half of what it trades is fucking nuts. just like fuckbook and aaple....i guess it's in the air....

Thu, 10/18/2012 - 13:10 | 2901575 CPL
CPL's picture

Trading Halted!

Thu, 10/18/2012 - 13:16 | 2901601 ghostfaceinvestah
ghostfaceinvestah's picture

Funny how they never halt stocks that go up in price.

Thu, 10/18/2012 - 13:27 | 2901678 Stoploss
Stoploss's picture

Look where the problem came from M O B I L E..  Cannot be monetized..............................

Thu, 10/18/2012 - 12:44 | 2901419 LongSoupLine
LongSoupLine's picture

 

 

Those numbers can't be right...I'm gonna Google it...

Thu, 10/18/2012 - 12:49 | 2901448 SeverinSlade
SeverinSlade's picture

Serious question.

Does anyone know if Google gets a hit when someone searches using Startpage or Ixquick?

Thu, 10/18/2012 - 12:54 | 2901476 vast-dom
vast-dom's picture

not sure. Ixquick has a piggyback option off of google without registering your IP. so i guess if facebook fakes most of their click-throughs, then i'm certain google will count that Ixquick optional search.

Thu, 10/18/2012 - 13:09 | 2901563 seek
seek's picture

Yes, they do, startpage is just a privacy proxy.

In the past google has blocked proxied searches when the proxy has gotten too large (ie google loses too much revenue from it.)

Thu, 10/18/2012 - 13:25 | 2901658 Skateboarder
Skateboarder's picture

I'm more butthurt by FB's resilience in hanging around $20 and posting 11-12 cents EPS.

Thu, 10/18/2012 - 12:44 | 2901421 overbet
overbet's picture

Options market makers were frantic. Wide ass spreads nobody knew what hit them. Good work GOOG!

Thu, 10/18/2012 - 13:01 | 2901528 max2205
max2205's picture

MOTHER FUCKERS.... this is about as bullshit as it gets...fuck all you cocksuckers...I was waiting to play those spread near the close

Thu, 10/18/2012 - 12:46 | 2901429 spastic_colon
spastic_colon's picture

Good time to replace IBM in the Dow

Thu, 10/18/2012 - 12:46 | 2901431 Death and Gravity
Death and Gravity's picture

"Google Bomb" just got a new meaning.

Thu, 10/18/2012 - 13:12 | 2901584 BeaverFever
BeaverFever's picture

Personally I hope that Reggie the Gobble lover personally apologizes to all of his brainwashed followers as well as all as any dupes on ZH who took his nefarious advice. Gobble = NSA

Thu, 10/18/2012 - 13:26 | 2901668 CH1
CH1's picture

Actually, I think AT&T is NSA and Google is CIA, but who really knows and what's the difference?

Thu, 10/18/2012 - 13:16 | 2901597 SILVERGEDDON
SILVERGEDDON's picture

GREAT GOOGLIE MOOGLIES ! IT'S THE END OF THE WORLD AS WE KNOW IT ! And, I'm feeling fine..............................

Thu, 10/18/2012 - 13:37 | 2901752 SILVERGEDDON
SILVERGEDDON's picture

Reggie was wiped out. Off with the suit, back to the loin cloth and spear, just in time for SHTF. BANKERS. iT'S WHAT'S FOR DINNER.

Thu, 10/18/2012 - 12:44 | 2901399 El Hosel
El Hosel's picture

IBM,INTC........GOOOOOOOOOOOOOOOOOOOOOOOOOG!

  Bernanke going to upgrade GOOG to buy on weakness, for the good of the Ponzi.

Thu, 10/18/2012 - 12:41 | 2901400 SeverinSlade
SeverinSlade's picture

Yup, the economy is BOOMING.  Michelle Obama said so.

Thu, 10/18/2012 - 12:48 | 2901444 Winston Churchill
Winston Churchill's picture

Rayciss.

She said BOOMERANGING.

Thu, 10/18/2012 - 12:49 | 2901450 SeverinSlade
SeverinSlade's picture

Michelle O is racist against Aussies and Koalas.

Thu, 10/18/2012 - 13:05 | 2901543 pods
pods's picture

But is she against Australian kissing?

You know, down under.

pods

Thu, 10/18/2012 - 13:02 | 2901529 the not so migh...
the not so mighty maximiza's picture

Michelle Obama's ass is BOOMING

Thu, 10/18/2012 - 12:42 | 2901406 alien-IQ
alien-IQ's picture

Reggie Middleton please report to the emergency room, Code Blue. I repeat CODE BLUE.

Thu, 10/18/2012 - 12:43 | 2901408 I am a Man I am...
I am a Man I am Forty's picture

Reggie Reggie Reggie!!!!!!  What's going on here? Your number one pick!!!!!!!!!!!!

 

WRONG AGAIN!!!

Thu, 10/18/2012 - 12:47 | 2901441 alien-IQ
alien-IQ's picture

I have no doubt that he will somehow find a way of interpreting these numbers to conclude that he was, as always, right. After which he will surely grace us all with a Dion Sanders endzone dance...Because that's how he rolls.

Thu, 10/18/2012 - 13:07 | 2901558 I am a Man I am...
I am a Man I am Forty's picture

Buried in his 1000 pages of pro google analysis of uninterpretable nonsense there will be language that there is a remote possibility of a miss due to a so in so risk factor on footnote 26 on page 645 and he will say I told you so, that I saw this coming, and this is a buying opportunity.

Thu, 10/18/2012 - 13:10 | 2901579 alien-IQ
alien-IQ's picture

no doubt about it.

Thu, 10/18/2012 - 12:42 | 2901409 kliguy38
kliguy38's picture

This could be serious.......I think I'll convert my GOOG to AAPL

Thu, 10/18/2012 - 12:43 | 2901414 Triple A
Triple A's picture

ahhhh poor search engine, i thought google was going to save the world.

Thu, 10/18/2012 - 12:44 | 2901416 jimijon
jimijon's picture

Reggie... Oh Reggie...   *crickets*

Thu, 10/18/2012 - 13:35 | 2901728 Count de Money
Count de Money's picture

BoomBustBlog post of how Reggie saw this coming in 3, 2, 1...

Thu, 10/18/2012 - 12:43 | 2901417 lizzy36
lizzy36's picture

Free FALLIN

What were Lavorgna's projections ;)

If revenue is down 15% why hasn't FB hit negative numbers yet?

Thu, 10/18/2012 - 12:44 | 2901418 Cognitive Dissonance
Cognitive Dissonance's picture

Missed it by >          that          < much!

Thu, 10/18/2012 - 12:45 | 2901424 gmak
gmak's picture

Bloomberg suggests that the press release was early through a mistake - based on placeholders for some items such as CEO's comment(s).

Thu, 10/18/2012 - 12:45 | 2901430 hotkarlandthecl...
hotkarlandtheclevelandsteamers's picture

Reggie did you tell us your clown obama supporter. Any way you slice and dice these numbers they are steaming turds.

Thu, 10/18/2012 - 12:46 | 2901432 williambanzai7
williambanzai7's picture

Boom or bust?

Paging Mr Middleton...

Thu, 10/18/2012 - 13:03 | 2901536 alien-IQ
alien-IQ's picture

I'm really looking forward to hearing him try to spin this one.

Thu, 10/18/2012 - 13:05 | 2901549 Wakanda
Wakanda's picture

Don't scare Reg away - he's valuable as a contrarian indicator.

Thu, 10/18/2012 - 13:09 | 2901565 alien-IQ
alien-IQ's picture

I predict he will say "I never said buy GOOG"....just like he claimed he never said "Sell AAPL"...at 480!.

 

It's gonna be fun watching him twist in the wind with this one.

Thu, 10/18/2012 - 12:46 | 2901433 ZakuKommander
ZakuKommander's picture

Quickly, Reggie! To the barricades!

Thu, 10/18/2012 - 12:46 | 2901434 monopoly
monopoly's picture

Buy the Dip. LOL..JK!

 

Thu, 10/18/2012 - 12:58 | 2901435 LongSoupLine
LongSoupLine's picture

Margin calls are coming fast, Bitchez!!

 

edit: Shares halted at -9%  (but it's ok if they go up 20 sigma moves?!?!)

fuck this rigged game!

Thu, 10/18/2012 - 13:21 | 2901631 CloseToTheEdge
CloseToTheEdge's picture

Hey Google, Say Hello to my little friend THE EDGE...

Thu, 10/18/2012 - 12:50 | 2901453 ptoemmes
ptoemmes's picture

Warning Will Rodgers.  Algo meltdown.  Does not compute. Dive! Dive! Dive!  Aooga, Aooga.  Dive! Dive! Dive!

Thu, 10/18/2012 - 12:49 | 2901456 monopoly
monopoly's picture

So glad none of the mutual funds own GOOG. Whats that? They all OWN GOOG> Oh My!

Thu, 10/18/2012 - 12:49 | 2901457 Cult_of_Reason
Cult_of_Reason's picture

Bullish news! All is well! Buy the dip and hold for 5-10 years!

The stock is dirt cheap. Bernanke has your back and will buy GOOG if needed.

Trees grow to the sky. Cramer is a genius. CNBC never lies.

 

Thu, 10/18/2012 - 12:50 | 2901458 john_connor
john_connor's picture

Funny how the definition of plunge is now like 5 snp points

Thu, 10/18/2012 - 12:52 | 2901466 silverserfer
silverserfer's picture

because ppl are realizing Chrome is a POS!

Thu, 10/18/2012 - 13:19 | 2901618 earnyermoney
earnyermoney's picture

Why did Google need to reinvent the "wheel" when FireFox is a able open source browser? I'm curios to hear from any one who knows.

Thu, 10/18/2012 - 13:29 | 2901695 Arkadaba
Arkadaba's picture

Number one reason would be data collection.

Thu, 10/18/2012 - 15:41 | 2902283 earnyermoney
earnyermoney's picture

Are you saying you can block data collection via FF but not Chrome? Hard for me to believe given all the open source addons that address these issues.

Thu, 10/18/2012 - 13:57 | 2901841 Orly
Orly's picture

Firefox seriously needs to work on user-friendliness.  It's just too confusing.  Too many clicks to get what I want.  Half the stuff is hidden and I have to go find it.

Not impressed with it at all.

Thu, 10/18/2012 - 15:34 | 2902258 earnyermoney
earnyermoney's picture

work on user-friendliness.

 

Interesting. I think intuitive user interfaces are lacking in open source software. Not an issue with me but I'm in the software industry. I know Reggie hates Apple but they have intuitive user interfaces for the casual user of technology. It's not the device or the underlying OS, it's the user experience that is most important.

Thu, 10/18/2012 - 19:00 | 2902839 blunderdog
blunderdog's picture

Apple has always taken interface seriously, and they're really about the only company that ever has.  They blow away all the competition on interface, that's for sure.  (Although, being primarily a listener of ALBUMS, I really hate iTunes.)

Thu, 10/18/2012 - 12:53 | 2901467 LouisHill
LouisHill's picture

Classic Head and shoulders in retrospect.

Thu, 10/18/2012 - 12:53 | 2901474 Non Passaran
Non Passaran's picture

Not bad! Let's see some serious crashing start just before the election.
Let it be known that I have no objection!

Thu, 10/18/2012 - 12:54 | 2901475 sharky2003
sharky2003's picture

Trading halted...BOO!

Thu, 10/18/2012 - 13:47 | 2901806 FuzzyDunlop21
FuzzyDunlop21's picture

Fucking bullshit. Not surprised though, cant have the darlings tank 3 weeks before election

Thu, 10/18/2012 - 12:55 | 2901485 Doubleguns
Doubleguns's picture

October, Market down, Friday tomorrow. Hmmmmm

Thu, 10/18/2012 - 12:57 | 2901491 Cruel Aid
Cruel Aid's picture

Monthly chart says 'no big deal'

Trading halted says otherwise.

Thu, 10/18/2012 - 12:59 | 2901497 q99x2
q99x2's picture

Google goes Snuffaluffagus to halted.

Thu, 10/18/2012 - 12:58 | 2901500 Duke of Con Dao
Duke of Con Dao's picture

wait??? does that mean Google might charge me for my crappy vid mash-ups?

YouTube - Cliff on The Coming Financial Cliff: Mitt Romney 'The Numbers Add Up!', Robertson 'How Do You Know?"

Thu, 10/18/2012 - 12:59 | 2901508 alien-IQ
alien-IQ's picture

the horror....the horror

Thu, 10/18/2012 - 13:00 | 2901512 Ineverslice
Ineverslice's picture

 

aapl...fb...dive

 

 

 

 

Thu, 10/18/2012 - 13:05 | 2901520 Count de Money
Count de Money's picture

Trading halted on GOOG.

I see I'm a little late on this one. Any guesses at what it'll reopen at?

Thu, 10/18/2012 - 13:09 | 2901564 LoneStarHog
LoneStarHog's picture

Probably open up 1-2% ... The PPT does not want to be too obvious. /Sarc Off

Thu, 10/18/2012 - 13:03 | 2901530 ptoemmes
ptoemmes's picture

And they called the swan GOOG and it was black.

Thu, 10/18/2012 - 13:08 | 2901560 Wakanda
Wakanda's picture

New species - Cygnus Googlus nigir

Thu, 10/18/2012 - 13:03 | 2901535 Bastiat009
Bastiat009's picture

Google misses, quick sell gold, that should make up for it.

Thu, 10/18/2012 - 13:33 | 2901712 fuu
fuu's picture

Yes everyone should sell all their gold. Right now. At the same time.

Thu, 10/18/2012 - 13:06 | 2901553 uncle_vito
uncle_vito's picture

This is absolutely hilarious.  Screw the muppets and save my short trade today!

Thu, 10/18/2012 - 13:08 | 2901559 Bam_Man
Bam_Man's picture

Not to worry. The Fed will announce that as part of QE 4 they will be acquiring shares in "strategically important" companies such as GOOG, FB and AAPL for "national security" reasons. BTFD!

Thu, 10/18/2012 - 14:04 | 2901887 Lewshine
Lewshine's picture

BAM's got it right, there is no way this corrupt fawkin market allows a short to get out with a dime on this trade. Buy 1000 weekly ITM calls and make a ton. CNBC is dragging every assbite analysis they can find to say; "DON'T BELIEVE WHAT YOU SEE!!!"

Thu, 10/18/2012 - 13:11 | 2901571 jesusonline
jesusonline's picture

Google celebratin da Black Monday ov 1987 :P

Shares of Google halted on Nasdaq after 9% slide

Thu, 10/18/2012 - 13:10 | 2901573 Yen Cross
Yen Cross's picture

I can't wait to hear how Bob Piss-ani, spins this one. Reopen the stock and let that fucker burn!

Thu, 10/18/2012 - 13:10 | 2901578 XitSam
XitSam's picture

The French media sites news must have hit the market.

Thu, 10/18/2012 - 13:15 | 2901591 earnyermoney
earnyermoney's picture

Wonder if Reggie's clients knew of this announcement?

 

LOL

 

 

Thu, 10/18/2012 - 13:20 | 2901628 devo
devo's picture

Lol @ halting.

Thu, 10/18/2012 - 13:26 | 2901675 earnyermoney
earnyermoney's picture

Can not have Nasdaq, Dow, S&P 500 Red prior to Monday's final debate between the red and blue hued fascists.

Thu, 10/18/2012 - 13:43 | 2901739 devo
devo's picture

They might have to halt the entire market until elections at this rate.

Thu, 10/18/2012 - 13:25 | 2901649 azzhatter
azzhatter's picture

Cramer just blew thru all his coke stash

Thu, 10/18/2012 - 13:27 | 2901670 youngman
youngman's picture

Smells like 2009 to me boys and girls....

Thu, 10/18/2012 - 13:28 | 2901684 fuu
fuu's picture

How many trades are they going to DK over this one?

Thu, 10/18/2012 - 13:31 | 2901688 devo
devo's picture

How long before Warren Buffet crawls out of his cave babbling about this great buying opportunity?

Thu, 10/18/2012 - 13:30 | 2901696 devo
devo's picture

Coal stocks looking ripe for the short again. Jesus, people never learn. Oh yeah, there are no people in the market...lol.

Thu, 10/18/2012 - 13:35 | 2901730 Let The Wurlitz...
Let The Wurlitzer Play's picture

Ever since Google stop searches for guns I stoped using them and I also cancelled my search advertisinig in by business through google.  They can all go to hell.

 

Thu, 10/18/2012 - 13:42 | 2901769 devo
devo's picture

Wait, what do you mean they stopped searches for guns?

I recently queried something related to guns, and all the sites that came up months prior were gone. I thought the sites shut down. You're saying Google removed them from search results?

Also, what engine do you use now? I've been looking for a good alternative to google for some time.

Thu, 10/18/2012 - 13:52 | 2901833 Let The Wurlitz...
Let The Wurlitzer Play's picture

"Google shopping site bans weapons related searches, etc etc etc..." June 2012

Try Yahoo idiot.

 

Thu, 10/18/2012 - 13:56 | 2901839 devo
devo's picture

Yahoo blows worse than your mom, you sheep fucking mouth breather.

Thu, 10/18/2012 - 14:50 | 2902065 Taffy Lewis
Taffy Lewis's picture

@devo: I use http://duckduckgo.com/. It doesn't track (or at least they say that they don't). Have been using it for one year and I notice that I am not getting eerie unsolicitated popup ads in places where they shouldn't appear.

Thu, 10/18/2012 - 13:36 | 2901736 Caracalla
Caracalla's picture

I want to sell my GOOG.  When are they going to reopen trading ??????

Thu, 10/18/2012 - 13:44 | 2901778 El Hosel
El Hosel's picture

Another CONfidence builder for "the system".  "The Market" continues to shrug off bad news in favor of financial engineering.

Thu, 10/18/2012 - 13:40 | 2901770 Lewshine
Lewshine's picture

If you're pissed off now, just wait till "the market" drums up the busload of horseshit that sends Google and the Q's back to even before the close. Think they don't have the balls to do this - THINK AGAIN!! Google's earnings were allowed to be seen BEFORE the cook job that all companies are given license to do prior to "PUBLIC" release. There's an asshole on CNBC right now talking about how it should open flat or higher (754) prior to the drop. We live in the Matrix fawkwads, get a clue! 

Thu, 10/18/2012 - 13:46 | 2901801 devo
devo's picture

How long before Obama's writing Google a blank check?

All roads lead to gold.

Thu, 10/18/2012 - 13:52 | 2901830 Abednego
Abednego's picture

Someone get Reggie Middleton on speed dial....

Thu, 10/18/2012 - 14:34 | 2902017 Tombstone
Tombstone's picture

Will this cause Benny to add another $10 billion to the monthly pot?  Or, perhaps LNKD is really worth 2000 times earnings.

Thu, 10/18/2012 - 15:19 | 2902190 holgerdanske
holgerdanske's picture

There must be something poetic about Google showing a picture of Moby Dick today!

Oh, there is, there is.

Thu, 10/18/2012 - 18:06 | 2902700 geoffr
geoffr's picture

Apple is sitting on $110 billion and a reasonable P/E ratio, but, yeah sure, Apple.

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