Under that equation, revenue surged 36 percent from the previous year to $14.4 billion.
After subtracting advertising expenses, Google's revenue totaled $11.3 billion. That figure was well below the average analyst estimate of $12.1 billion, according to FactSet.
But many of the analyst forecasts included revenue from Motorola Mobility's set-top division, which Google excluded from its breakdown. Had the set-top division been included in Google's accounting, the company's net revenue would have matched analyst estimates.
The performance boosted Google's stock by $35.33 to $738.20 in Tuesday's extended trading.
Google would be doing even better if not for problems at Motorola Mobility, a cellphone pioneer that has been struggling since Apple revolutionized the industry with the release of the iPhone in 2007.
Motorola Mobility suffered an operating loss of $353 million on revenue of $1.5 billion in the fourth quarter
Google has been able to offset the slump in its search advertising prices by selling more video advertising on its YouTube subsidiary and other more graphical forms of marketing. The number of clicks on Google ads has still been rising, too. That's important because the company typically gets paid by the click. In the fourth quarter, Google's total ad clicks rose 24 percent from the previous year.
To gain a foothold in the mobile market, Google bakes its services into its Android software, an operating system that it gives away to makers of smartphones and tablets.
Android is now powers more than 500 million mobile devices worldwide, giving it a wide lead over Apple's software for iPhones and iPads. Through September, Apple had shipped about 370 million iPhones and iPads. Apple Inc., which has morphed from a Google ally to bigger rival in the past five years, is scheduled to release its fourth-quarter results after the stock market closes Wednesday.
Google, which is based in Mountain View, Calif., didn't update how many more Android devices were activated in the fourth quarter..