Published: Fri, February 02, 2018
IT&Software | By Alfonso Woods

Keep an Eye on Amazon's Growing Ad Business

Keep an Eye on Amazon's Growing Ad Business

Non-advertising revenue from Google combined with revenue from Verily and the other Alphabet companies was $15.5 billion in 2017, accounting for about 14 percent of total revenue, compared to $10.9 billion, or 12 percent, in 2016.

In a statement to the market announcing the result, CFO Ruth Porat said, "Our business is driving great growth, with 2017 revenues of $110.9 billion, up 23% year on year, and fourth quarter revenues of $32.3 billion, up 24% year on year". The Google segment accounted for $31.9 billion in revenue and delivered an operating profit of $8.8 billion.

CFO Ruth Porat said the operating profit growth to United States dollars 7.664 billion from 6.639 billion underscored Alphabet's core strength and that the company would continue its strategy of making substantial investments for the long-term in new businesses. But in the fourth quarter and end-of-year 2017 financial results for Google's parent company Alphabet reported cloud revenues in excess of $1bn for the fourth quarter. "Other revenues", a category that includes both Google's cloud business as well as its hardware revenue, grew to $4.69 billion, from $3.4 billion in Q4 of 2016. Alphabet's Class A shares fell as much as 5% to $1,125.79 in after-hours trading, but rebounded to around $1,150 by the time of publication. Meanwhile, he also called out YouTube, Google Cloud, and hardware as big focuses for the future of the company.

Google records its first $100 billion in a year.

Plus, although Google paid more in TAC on its own properties because of high costs in mobile search, it said it expects TAC to stabilize in the following quarter.

Google's revenue beat was driven by the advertising business, which posted $27.27 billion in revenue. On a non-GAAP basis, Alphabet Inc (GOOGL) earnings came in at $9.70 per share on $32.3 billion billion in revenue.

The Mountain View, Calif., company said it had a loss of $4.35 per share, caused by provisions for USA tax changes enacted past year. The company also appointed John Hennessy to serve as Chair of Alphabet's Board.

Facebook said on Wednesday that its ad sales, 89 percent of which are for mobile devices, jumped 48 percent in the fourth quarter from the year-ago period even as users spend less time on its main social network. He is a former Stanford University president and a computer scientist.

And that growth is set to continue if Pichai's claims on an earning call are to be believed: "We are also increasingly doing larger, more strategic deals with customers".

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