Google quarterly results miss expectations

A carpet with the Google logo is seen at the entrance of Google France's new headquarters before its official inauguration in Paris in this December 6, 2011 file photo. [Photo/Agencies]

SAN FRANCISCO - Google on Thursday released its 2011 fourth fiscal quarter earnings report, with results missing analysts' expectations although its quarterly revenue topping $10 billion for the first time in the company' s 13-year history.

The Mountain View, California-based company posted revenue of $10.58 billion for the quarter ending Dec 31, 2011, an increase of 25 percent on a year-on-year basis.

Google's net revenue, excluding traffic acquisition costs, came in at $8.13 billion dollars.

It had a profit of $2.71 billion, compared to 2.54 billion dollars in the same period the previous year. Earnings per share, excluding certain items, was $9.50

The average estimate from analysts polled by FactSet is $10.50 per share, excluding the company's expenses for its employees' stock compensation. Net revenue was expected to rise 31 percent to around $8.4 billion after subtracting ad commissions.

Google's shares fell about 10 percent in after-hours trading after the results were released.

"Google had a really strong quarter ending a great year. Full year revenue was up 29 percent and our quarterly revenue blew past the $10 billion mark for the first time," said Larry Page, chief executive officer of Google, in a statement.

"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," he said.

Google hired some 7,000 people last year, the most intense hiring spree since it started in a rented Silicon Valley garage in 1998. With advertising programs as its largest revenue source, Google has also become a major player in mobile software, e-mail, Web browsers and online video.

On Thursday, the Internet search giant was named the "best company to work for in America" by Fortune magazine.