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Google Posts Q3 Earnings – Revenues of $14.89 Billion, But a $248 Million Operating Loss From Motorola

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Google posted its Q3 2013 earnings today, showing revenues for the quarter of $14.89 billion, a 12% year-over-year increase. The overall business was up 6% quarter-over-quarter and the company now has $56.52 billion cash on hand. Not a bad quarter for Google.

If you were looking for bad news, you can find it in the tiny section of their earnings report dedicated to Motorola. Moto brought in revenues of $1.18 billion (down from  the $1.78 billion in Q3 2012), which turns out to be a $248 million loss or 21% loss of segment revenues. Obviously, it’s still early for Motorola and the new leadership team that Google assembled there. They have clearly spent money on cuts, building out new distribution and manufacturing for their Moto X product, and in other costs associated with turning the company around.

Google now has 46,421 full-time employees across the globe (4,259 of which are Motorola’s).

Via:  Google Investors

  • Aaron Clow

    56 billion cash on hand, who’s worried about a $248 million loss at Motorola?

  • HarleyFan72

    Suck it CrApple…

  • NemaCystX

    I think the Motorola loss is more to do with it being on hiatus in the device release department. I mean it took nearly a year before we saw any new Moto devices since Google purchased them so that can have substantial effects on their revenues and they were probably prepared for that. I just hope Moto X is their white knight, because I think its a great device and perhaps the best Motorola device i’ve ever used. It might not be as fast as other devices with quad cores and insanely fast GPU’s but the Moto X holds its own, even the screen is gorgeous compared to other top of the line devices like the HTC One and iPhone

    Keep up the great work Motorola!

  • tomn1ce

    I see the Droid Ultra made it onto the Agents of Shields…Hopefully Moto gets some exposure and stops the bleeding….

  • GentlemanScholar

    Moto’s revenues decreased from $1.78B to $1.18B year over year; however, that does not indicate that they had an operating loss. That’s a separate subject. While they did have an operating loss of $248M, your article seems to imply that their loss in revenues from the prior year lead to the segment revenues loss. They are two separate things. You should start another sentence when discussing the operating loss. It’s possible to lose revenue but still have an increase in operating income or even have an operating profit. Your article conflates the two metrics.

    • M3D1T8R

      He does not equate the two. You’re assuming that. I didn’t read it that way at all.

  • Vermin_Cain

    Dumb question here. Where do they keep this $52 Billion in cash?

  • Ann Droid

    It’s an improvement over Q2 2013 in which they made 1 billion and had a 342 million dollar loss.
    In Q4 they will have a small loss since Droids will sell more, Xmas and black friday, moto x price drop and new motomaker options for all carriers. Moto X is being introduced right now in LATAM and Motorola is huge there.
    Remember, those 1.2 billion in sales came from the Americas, since moto left Asia and Europe last year.

    It’s not that good, I know. I’m quite disappointed actually, but at least things are getting better!

  • Droidzilla

    Can we just switch out Democrats and Republicans for Google and Apple? Google and Apple make jabs at each other and spy on us, just like Democrats and Republicans, but at least Google and Apple have the courtesy to anonymize our data and the ability to turn a profit.

    • Not to mention getting things done.

    • Cowboydroid

      We don’t want government turning a profit. But yes, getting rid of both Democrats and Republicans would be a great step towards liberty.

      • James_75

        If they turn a profit by people voluntarily trading their money for something of value then I’m all for it. At least then it’s not theft… aka taxation.

        • Cowboydroid

          My point is not that companies shouldn’t profit, they absolutely should, as should every individual involved in the market. My point is that government should not turn a profit. It really shouldn’t even be allowed to thieve from the people. Profit is exactly what the government already does, since it doesn’t actually have to work for the money it takes in.

          • Droidzilla

            Can’t argue with that.

      • Droidzilla

        You know what I mean; be able to intelligently handle money. And yes, government should turn a profit on their endeavors if possible and then refund the profit back to the people. Like Alaska does.

        • Cowboydroid

          That negates the whole purpose of taking the money to being with. If it’s simply going to give the money back, it should have never taken it in the first place. It will always give less back than what it took because that is the nature of bureaucracy, to squander wealth through inefficiency.

          Those who get money without earning it are incapable of intelligently handling it. We see this all the time with massive inheritances and the lottery. It’s the exact same nature of government, to handle loosely the money it didn’t have to work for.

          So if your desire is a government that can intelligently handle money, you should be calling for an end of government as we know it, and a free market in all the services that government provides.

      • alex drum

        because single party governments have always worked so well throughout history.

        • Cowboydroid

          I’m sorry, I don’t follow your logic…

    • George264

      yeah, they can at least be successful at what they do.

    • mabelgreenly34

      Computer Science is a science of abstraction – creating the
      500USD per week is now easy by following this… Bay35.coℳ

  • Pedro

    I’m curious to see how Motorola does with a full quarter of Moto X sales.
    Especially when other carriers get access to MotoMaker.

    • guesswhat

      nobody knows about moto x outside of tech circles, moto x sales number for this generation atleast will be dismal ..they have long way to go in rebuilding the brand and increasing awareness ..

      • Pedro

        First off, I think you are wrong. Folks who head into non-VZW stores are probably shown the Moto X. VZW customers learn about the Droid line.

        But, when the holiday buying season starts, and MotoMaker isn’t an AT&T exclusive…

        We’ll see.

        • NemaCystX

          Thats when you’ll see Google’s $500million marketing budget at work 😉

      • JRUIV

        I see Moto X commercials EVERYWHERE!!!!

    • kashtrey

      They won’t suddenly be making money. You don’t dig yourself out of a hole the size Moto is in with a single good release. We’ll likely see losses flatten soon, if the X was successful, and maybe see a profit by the end of 2014, though most likely later.

      • Pedro

        Come mid-January, we’ll see. The start-up costs for Moto X are likely all accounted for. I bet a profit for Q4. Lunch?

        • kixofmyg0t

          Not just X, Ultra as well.

          For example, one machine that makes backplates for the DROID Ultra cost $40,000. Moto has 22 of them. Oh and that machine can’t make the backplate for the MAXX or Mini, those are made on different machines….

          Oh and yields should still be below 25% still. So out of every 100 parts they make, only 25 can pass QA/QC and be used in a phone that can sell. Honestly 25% yield is very optimistic. I’d bet every paycheck I have left this year that it’s not.

          My point, Kevlar is expensive. Bringing a phone to market is expensive. Not everyone understands the costs involved.

        • kashtrey

          Doubtful. You don’t turn around how many quarters worth of losses with one successful phone launch. I’m sure the Moto X and Droid line sold well but no where near what it would need to, to single-handedly bring Moto back.

    • Silver Veloz

      Aren’t many waiting for Verizon version of Moto X with MotoMaker? I know I am. I wonder if they would have released MotoMaker to all carriers at once, how different the numbers would be?

    • sranger

      I am just not hearing any one wanting a Moto X…. I work in sales. Most people have Samsung phones or iPhones…

      Most just don’t seem at all interested in the X….????

  • azndan4

    Maybe if the Moto X had an unlockable bootloader, SD card slot, removable battery, and a current generation processor it would have sold better.

    • Butters619

      current generation processor

      You know the processor in the Moto X has the same Krait 300 processing cores as the SGS4 and One? You also know the processor in the Moto X has the same GPU as the SGS4 and the One?

      • Ben Klene

        But it doesn’t have the number 4! /s

        Extremely happy with my X8 Maxx 🙂

      • Andrew Gabriel

        Hummm I think he was thinking about the Quad Krait 300’s and not the Dual. Also faster Ram is always nice. Its yesterday’s hardware with tomorrow’s software. Nice mix, but cant bring myself to downgrade.

        • blix247

          Blah blah blah, I want my quad core, so two of those can cores sit idle 99% of the time.

          Nevermind touchless control and active display, both of which require hardware modifications.

        • Butters619

          Sure, it is dual core vs quad core but it’s not “yesterday’s hardware”.

    • bewlew

      Yeah maybe if the phone had these few things that a small subset of users want they wouldn’t have lost 248 million dollars. Can’t tell if trolling…

    • hans wee

      to the like 14 geeks that care. the people the phone is being marketed to probably care very little about those things. if anything with a removeable battery / sd card slot the phone woudl probably be thicker

    • Alex Pasquarella

      The millions and millions of people buying iPhones, even though they lack everything you just listed, makes your point invalid. In other words, your opinion is wrong.

      • Sporttster

        Not necessarily. People go to Android because they’re tired of the iphone not having what was listed, plus a larger screen, Itunes, etc. So if one would want a phone ‘like a iPhone’ they would just go and buy a iPhone.

    • Leonardo Rojas

      The Moto X is powerful enough for whatever you want n.n It’s actually in the top 20 of the most powerful smartphones. There’s no compromise in its HD screen.
      But I agree the lack of Sd card is almost unforgivable, specially having that price. Also, the stupid customization only open for Verizon now see its fruits in the loss area. I’d have bought a personalized Moto X, despite the lack of SD card. But silly Google had to go and cap it not allowing me to personalize it. I hope they’ve learned.

      • NemaCystX

        AT&T not Verizon

        If you really need an SD card so badly, buy an S4 or get one of those Kickstarter USB media readers that let you go up to 65GB of microSD storage OTG

        • Leonardo Rojas

          The lack of SD card is somehow forgivable. What’s bad is the combination of it with the price which is similar to the S4, for example. That makes you think twice before buying the Moto X, my friend.
          When its price drops at least by 30% I’m quite sure I’ll take it as an upgrade to my Razr i. But, for now, I’ll buy the Xperia Z Ultra or the Note 3 as I’d like a big screen smartphone first. I’ll use it with my compact Razr i n.n Then I’ll replace the Razr i with the Moto X, because of its size. I’ll still have one compact and one big n.n
          Sorry for the lengthy explanation n.n

    • Sporttster

      Would definately agree. Especially the sd slot deal. I know right off hand three people myself making four that disregarded the new Moto line simply because it did not have that.

  • Butters619

    The best part of Moto being under Google’s arm is that Google has the cash to really make the turn around happen and invest for the long haul. Without Google, Moto would have fallen apart and been pieced away to the highest bidders.

    • Franklin Ramsey

      So… Moto would have been Blackberry.

      • Butters619

        Except Moto didn’t have the amount of cash needed to drag itself on bleeding for as long as BlackBerry has.

        • guesswhat

          they do infact ..they had 3billion dollars cash when google bought them without any debts ..so they could have dragged and died like blackberry ..now they will worry about google just killing them completely 🙂 and salvaging what ever assets they have

          • Butters619

            You are right. I stand corrected!

          • kashtrey

            Yeah, they did the right thing and sold while they still had value in their brand and market. Blackberry on the other hand has withered away and really isn’t worth much to anyone any more.

    • YourFriend

      The worst part is they have to be forced to do whatever Google dictates them to put (or remove in this case) on their devices. I don’t really care for removable batteries especially since Moto makes huge batteries anyways, but I very much like to have an option to have an external storage expansion slot, and I really don’t want to depend on Google Drive to store all of my things. I’ve been using SD cards in my phones since 2006, and I don’t want to stop using them anytime soon. Every and all Android deices should have an SD card slot.

      • sirmeili

        of course Google dictates stuff to them (to a degree). They BOUGHT them! Wasn’t the mobile division of Motorola loosing money before? Seems to me like if you bought it the last thing you’d want is for them to operate as normal.

        I understand the features you want, and I’m sure that there will be companies that still want those. From Google’s eyes though, if no SD card means faster updates, then it might be better for them to leave it out and make sure they can give more timely updates for users.

      • findjaysee

        Please understand that SD cards are not the future, and they are NOT coming back. At all. They will continue to fade away from reality. Until that time comes though, you can continue to support companies that do offer you this option (which aren’t many).

  • martyjones100

    15bil huh? Not bad. Now, barack’ll be taking that, thank you very much. You evil, evil capitalists. How dare you

    • Pedro

      Except that they didn’t make $15B.
      They *only* made $3.4B.

      • Jeff C

        was like where the F did you find operating income in that blurb. then i clicked on the investors link. duh

        • Pedro

          Yeah, I wish that info went into original posts.
          But $15B looks more impressive than $3B.

          Kind of like basketball players who make a lot of money, but they spend a lot of money, too. Earnings aren’t profits.

    • Dominick White

      are you trying to make some kind of a point?

    • sirmeili

      Except the reality is that Corps pay very little in taxes (highest Corp tax rate in the world, but they have a very small effective tax rate!).

      This is the problem. I think I read somewhere that Apple’s effective tax rate is 2% and GE actually get’s paid from the Gov’t (they don’t pay taxes at all and instead we pay them). I have no sources on these specific cases and even I’ll admit they may be flat out wrong. What I’m not wrong about though is that corps in the US pay very little taxes percentage wise compared to you or I do. I find that a huge issue.

      I also believe that it was Eric Schmidt who stood up in front of Obama (I think it was him) in a town hall or something and said “When are you going to start taxing me like you should be?” There are some (not many) “rich” people out there who realize that they aren’t being taxes as much as they should and want that changed. Unfortunately, most rich people just want to get richer and paying less taxes is just one avenue to that end goal.

  • MichaelFranz

    i need an Android job in NYC google….stat

  • Shane Redman

    I’ve GOT to start selling ads.

    • ddpacino

      Easier said than done.

  • StuckOnVerizonForever

    They would have alot more if they didn’t pay their employees so much. Good job, though

    • Jeff C

      that’s how you keep the brightest minds in your specific field

      • Pedro

        True. Employee retention is much cheaper than employee training.

      • kashtrey

        Yeah, they’d actually end up making a lot less after they lost all their talent to Redmond and Cupertino.