Google said Thursday that the company's revenue in the second quarter grew 35 percent year-over-year to $12.2 billion and rose 15 percent in comparison with the prior three-month period -- boosted in part by the contribution of revenue from the company's new Motorola Mobility business.
Minus Motorola's contribution, Google's revenue rose 21 percent year-over-year, but only grew 3 percent in comparison with the company's revenue in the first quarter of 2012.
Google did not complete its acquisition of Motorola Mobility until May 22, so the company's new mobile division only made a partial contribution to Google's latest quarterly results, Google CFO Patrick Pichette told investors on Thursday. During this so-called "stub period," Pichette said, Motorola generated $1.3 billion in revenue overall.
"Our mobile devices revenue for that period was $843 million, encouraged by the strength of the North American Verizon franchise driven by the RAZR MAXX sales," Pichette said. On the other hand, Google also saw "weaker revenues driven by the declining international sales of feature phones and mid-tier smartphones."
A Mobile Search Boost
Due to the recent closing of the Motorola acquisition, Pichette cautioned investors to expect "some accounting variability" going forward with respect to Google's new mobile device segment. The company is evaluating every business segment it has inherited from the Motorola Mobility deal.
"Clearly, everybody should expect some changes at Motorola," Pichette said.
Still, Google is now more active on the hardware side than at any other time in the company's history. Beyond its addition of Motorola, Google clearly has high hopes for the recently released Nexus 7 tablet that the company built in partnership with Asus.
"We launched a bunch of exciting new products at I/O -- in particular the Nexus 7 tablet, which has received rave reviews," said Google CEO Larry Page in a statement. "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."
With respect to the company's performance in this year's second quarter, however, the good news for Google was that the Android platform overall -- as well as the company's growing presence on mobile devices running rival Apple's iOS -- helped to spur Google search engine usage. (continued...)