testsetset
The resounding feedback from Google’s earnings call today? Take a step back, ease the pressure of the public gaze, and let Google do its due diligence. World, take a chill pill.
Google’s new subsidiary, Motorola, brought in a cool $1.25 billion in earnings, which amounts to roughly 10 percent of the company’s revenues in the second quarter of 2012. It fared better than expected, but still reported operating losses of $233 million. The mobile business lost $192 million, and the home segment lost $41 million.
Read more about Google’s Q2 revenues here.
June 5th: The AI Audit in NYC
Join us next week in NYC to engage with top executive leaders, delving into strategies for auditing AI models to ensure fairness, optimal performance, and ethical compliance across diverse organizations. Secure your attendance for this exclusive invite-only event.
When probed further about losses and its “strategic asset,” Google’s CFO Patrick Pichette urged for patience. “We are totally excited about this opportunity with Motorola,” he said.
Fielding questions on Thursday’s call, Pichette emphasized that the management team has only been involved with Motorola Mobility Holdings Inc. (“MMI”) a few weeks. “Clearly, everyone should expect changes at Motorola,” he said. “We have to let them do their work.” For more potential post-acquisition changes and layoffs, read the full report.
While the numbers may suggest otherwise, Google executives emphasized that they are seeing phenomenal growth and remain committed to mobile. “Mobile is where search was in 1999,” said Nikesh Arora, chief business officer. “Mobile is going to be as core as desktop search was,” he added.
Pichette said that operating losses for the cell phone maker could be partially explained by “accounting noise.” If you remove some of the adjustments related to the acquisition, he explained, it has been a stable quarter.
Google bought Motorola for $12.5 billion in May, 2012. The acquisition added 20,293 employees this quarter, bringing Google’s total headcount to 54,604.
To learn more, read VentureBeat’s in-depth take on Google’s antitrust accusations and acquisition plans here.
