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Google makes $10.58bn in three months

Google says 2011 revenues up 29% on the day Fortune magazine names it the best place to work in America

Google was named the best place to work in America by Fortune magazine on Thursday and as if in celebration made more than bn in the final quarter of 2011, a company first.

But the firm’s results failed to impress analysts who had been expecting more from the search giant. The shares tumbled in after hour trading.

The search giant announced that full year revenues were up 29% in 2011. In the last three months of the year Google reported revenues of .58bn, an increase of 25% compared to the fourth quarter of 2010.

But quarterly earnings per share were .50, well short of the .49 that analysts were expecting, according to Thomson Reuters. And the average cost that advertisers paid Google per click also fell 8% from a year ago. Total costs rose 30%, which also hurt results.

“Google had a really strong quarter ending a great year. Full year revenue was up 29%, and our quarterly revenue blew past the bn mark for the first time,” said Larry Page, Google’s chief executive. “I am super excited about the growth of Android, Gmail, and Google+, which now has 90 million users globally – well over double what I announced just three months ago. By building a meaningful relationship with our users through Google+ we will create amazing experiences across our services. I’m very excited about what we can do in 2012 – there are tremendous opportunities to help users and grow our business.”

Colin Gillis, analyst at BGC Partners in New York, said the company’s acquisition of Motorola could further slow the company in 2012.

On a conference call with analysts, Page said he was “super pleased” that Google had topped Fortune’s poll. “Everyone here at Google is super excited about our work here and what the future holds,” he said.

Google hired about 7,000 people last year, the biggest growth spurt in the search giant’s 13-year history. The company beat Boston Consulting Group to top Fortune’s annual poll.

“Employees rave about their mission, the culture, and the famous perks of the Plex: bocce courts, a bowling alley, eyebrow shaping (for a fee) in the New York office,” Fortune wrote. © 2012 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds