Analysts had projected $9.64 EPS and $25.26 billion in sales.
Alphabet booked revenue of $26 billion during the three months ending December 31 2016, compared to $21.3 billion during the same time previous year. The company posted the fourth-quarter earnings per share of $9.36, adjusted and excluding items, on revenues of $26.06 billion.
Research company eMarketer estimates that Google is going to reach nearly $61 billion in revenue from search ads this year or almost 59% of the global search ad market.
Recent forecasts reported by eMarketer suggest YouTube's net US video ad revenue could reach $2.59 billion in 2017, accounting for 20% of total USA video ad revenue and making for the largest share of video ad revenue for any one company.
Google's net revenue - excluding $4.85 billion in Q3 traffic acquisition costs (TAC), what it pays partner websites to carry ads - was $21.2 billion, topping views. However, Aggregate cost per click plunged 15%, matching estimates, while CPC on Google sites plunged 16%, and CPC on member sites fell 19%, both continuing a serious negative trend. This performance was led by mobile search and YouTube. "We're seeing great momentum in Google's newer investment areas and ongoing strong progress in Other Bets", Porat added. "Other" represented 13 percent of Google's total fourth-quarter revenue, versus 10 percent in the fourth quarter of 2015.
But that doesn't mean the race is over, asserted Google CEO Sundar Pichai during Alphabet's fourth-quarter earnings call Thursday.
GOOGL shares were 2.1% lower in after-hours trading. The Company holds interests in Google Inc (Google).
Alphabet Chief Financial Officer Ruth Porat commented, "We see tremendous potential ahead for these businesses, as well as in the continued development of non-advertising revenue streams for YouTube".
Alphabet's focus on new sources of growth away from its traditional search business shall take some time to fructify, but the company appears to be on the right track and GOOG stock will benefit from this strategy.
Google websites' revenue increased 20% Y/Y to $17,968M, reflecting strength in Mobile Search and in YouTube (video ads across TruView, including buying on DoubleClick bid manager).
As mobile targeting technology advances, a larger percentage of advertising budgets will be allocated to mobile ad formats and Google are well positioned to do well.
- Malaysia drops a rung in 2016 anti-graft ladder
- Explaining NAFTA: What is the North American Free Trade Agreement?
- Virginia holds Notre Dame to season-low 54 points
- Trump's election win costs Paddy Power Betfair £5m
- Boeing Reveals Suits For Starliner Astronauts
- Michelle Obama praised Mary Tyler Moore's influence before her death
- Appeals Court Denies Full Hearing in Data Surveillance Case
- Mexico seeks United States dialogue, new trading partners
- Women's March Spreads from Washington to All 50 States
- Ranking Luis Enrique's Options to Cover for Barcelona's Injured Sergio Busquets