Alphabet Inc (GOOGL) Revenue up 24%, Earnings Miss the Mark

Feb 03, 2018, 07:43
Alphabet Inc (GOOGL) Revenue up 24%, Earnings Miss the Mark

For the entire 2017 fiscal year, Alphabet provided figures of $110.8 billion in revenue, and this is the first time at the company has been able to come up with triple-figure digits. The segment also includes revenue from Google's DoubleClick Bid Manager, AdMob and Google AdX.

Alphabet also reported that "other revenue" - a category that includes its cloud business, hardware sales and app store - increased almost 40 percent, to $4.7 billion.

However, some analysts looked past the costs and focused on a strong core ad business as well as positive comments from Google Chief Executive Officer Sundar Pichai on its fast-growing cloud computing business.

Porat also addressed the controversy past year around a number of advertisers pulling their campaigns from YouTube following a tumultuous period for the Google-owned platform. The tool was very well accepted with over 10,000 customers signing up to try it in a matter of weeks.

Google's next phase of growth will be based on three pillars he said: cloud, YouTube, and hardware.

A changing of the guard is also underway at Alphabet, with former Stanford University chair John Hennessy becoming the new company chair.

Google revenues, which include the company's enterprise cloud, software and data management products, attributed most of Q4 sales with $31.91 billion in revenue.

Alphabet, Google's parent company, reported a big miss in its fourth-quarter 2017 earnings report Thursday, sending the stock down as much as 6% in after-hours trading.

Shares of Alphabet were dropping 4 percent after the closing bell on Thursday after the parent of Google reported a quarterly loss due to a almost $10 billion one-time tax charge. Alphabet Inc (GOOGL) said that the tax reform bill resulted in a $9.9 billion additional tax expense in Q4 2017 for the one-time tax on overseas earnings to be repatriated.

Amazon shares were down almost 4% in regular trading but jumped by that much after it reported better than forecast sales and earnings figures, and made upbeat forecasts about the current quarter. Operating income dipped 2% to $US4.1 billion, compared with operating income of $US4.2 billion in 2016, but net income rose 25% to $US3.0 billion compared with net income of $US2.4 billion in 2016.

While that's all sounding good, the company actually took a massive $9.9 billion hit from a tax charge on foreign earnings. For the 2017 year though the company still managed a net income of $12.7 billion.

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