Alphabet reports Q4 2017 revenue of $32.3 billion, but missing expectations [Livestream]
02 February, 2018, 22:07
"We've reached an important point where other companies and developers are accelerating adoption of Alexa".
Google offering more to its partners via higher TAC suggests that even large companies see the need to lower their programmatic "tech tax".
"GDPR may prove to be a drag on the industry in Europe, but search is probably more immune from negative effects than most other types of digital advertising", added Wieser.
The company's advertising business was higher from Q4 of 2016. The segmentalso includes revenue from Google's DoubleClick Bid Manager, AdMob and Google AdX. However this was tempered after expenses jumped 27 percent to $24.7bn (£17.4bn) in the fourth quarter from the year-earlier period. That figure would account for about 2% of Amazon's estimated revenues for 2018.
For the entire 2017 fiscal year, Alphabet recorded revenues of $110.8 billion, up from $90 billion in 2016.
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The company's earnings are significantly impacted by the recently-passed tax bill: The company's effective tax rate shot up from 22% to 138% for Q4 of 2017, thanks to a one-time charge of $9.9 billion for repatriating foreign earnings. They add that traffic acquisition costs have become a bigger focus over the previous year because they accelerated for five consecutive quarters.
Thanks in part to the full inclusion of its Whole Foods acquisition, a surge in sales of Alexa voice products and a sharp rise in prime membership Amazon has beaten market forecasts. Rather, Porat insisted Alphabet's framework for capital allocation will remain unchanged, focusing first on driving organic growth in the business, then on potential complimentary uses for cash including capital returns. Officials attribute the growth to the strong performances of ad and cloud service businesses.
However, the revenue Google earns from AdX, DBM, AdMob and AdSense is just one-fifth of what it earns from its own properties, including search and YouTube, meaning the impact of flat revenue in this category isn't as notable.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. However, they do believe that this metric moderated in Q4 2017. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Saratoga Research & Investment Management now owns 257 shares of the information services provider's stock valued at $234,000 after purchasing an additional 3 shares during the period. Finally, Goldman Sachs Group reaffirmed a "buy" rating on shares of Alphabet in a research note on Friday, October 20th. The Motley Fool has a disclosure policy.