Alphabet Inc announced financial results for the quarter and fiscal year ended December 31, 2017. The Mountain View-based company posted $32.32 billion in revenue for the Q4 2017 — up 24 percent YoY from $26.06 billion during the same quarter in 2016. After deducting its traffic acquisition costs of $6.45 billion, the Search engine giant’s revenue alone was $25.87 billion. Overall, Alphabet posted revenues of $110.9 billion for 2017 — up 23 percent YoY.
The tech giant beat expectations on paid clicks and CPC (cost per click), two of Google's most important advertising metrics.
"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,” Ruth Porat, Chief Financial Officer of Alphabet, said in a statement late on Thursday. “Our full year operating income growth continues to underscore our core strength, and on top of this, we continue to make substantial investments for the long-term in exciting new businesses.”
However, according to CNBC, the company “missed Wall Street expectations on the bottom line, but beat estimates on revenue” as EPS (Earnings per share) was $9.70 as compared to $9.98 projected by Thomson Reuters. Likewise, the Revenue was marginally more by $0.46 billion than the expected revenue of $31.86
Unsurprisingly the key factor was Google’s growing advertisement business which contributed $27.27 billion as compared to $23.39 during the same quarter previous year. Google’s Cloud business and its hardware revenue reached $4.69 billion, from $3.4 billion in Q4 of 2016. The tech giant beat expectations on paid clicks and CPC (cost per click), two of Google's most important advertising metrics. Google’s Cloud business now generates over $1 billion per quarter, said CEO Sundar Pichai during the investors’ call.