Alphabet trounces profit estimates as Google reins in costs

Alphabet trounces profit estimates as Google reins in costs

The internet giant on Monday reported second-quarter profit of $3.2 billion even after accounting for the fine, imposed by the European Union earlier this month for abusing its market dominance On a per-share basis, the Mountain View, California-based company said it had net income of $4.54.

Excluding the €4.34bn (£3.9bn) fine handed down from the European Commission last week, Alphabet's earnings per share came in at $11.75 (9p), up from $8.90 a year earlier.

Google added over 13,000 employees since Q2 2017, now putting the total headcount for the company at over 89,000 - Google says this was primarily in the cloud portion of the business.

Alphabet clocked revenue of $32.7 billion, which was a year-on-year (YoY) rise of 26 percent.

On the face of it, the European Commission's massive fine hasn't really hurt Alphabet - at least not in the eyes of investors.

Google has continued to give search ads more prominent space on mobile phones, helping to fuel the brisk sales growth. Chief Financial Officer Ruth Porat suggested that the company would not sacrifice investment in its cash cow of advertising in favour of other bets like autonomous cars and delivery drones. Statista compiled StatCounter across both desktop and mobile (thus somewhat less relevant to this mobile-focused debate) and found that Google's search engine market share in all five countries stands between 90 and 95 percent. Thirteen analysts surveyed by Zacks expected revenue of $25.6 billion.

Cohen’s lawyer confirms existence of Trump tape
Non-disclosure agreements of the type signed by Ms Daniels and allegedly by Ms McDougal are not in themselves illegal. McDougal has said she began a almost year-long affair with Trump in 2006 shortly after his wife, Melania, gave birth.

Other tech giants Amazon and Facebook will report quarterly results later in the week. Google booked that charge in the same quarter a year ago - and posted a $3.5 billion profit.

"Alphabet also breaks out the revenues and losses for its 'Other Bets, ' like healthcare company Verily, internet service provider Fiber, and self-driving vehicle company Waymo".

The trend of increasing traffic acquisition costs (what Google spends to acquire advertising traffic) continued in Q2 2018, though just marginally. The largest Ad Revenue-based 'Net business has now averaged 23% growth for 34 (count 'em) straight quarters & shows no signs of slowing.

Pichai mentioned new cloud customers including Domino's Pizza Inc., SoundCloud Ltd. and PricewaterhouseCoopers LLP, during the call with analysts.

The rest of the revenue came from Google's non-advertising businesses, which include selling apps, gadgets and cloud computing services, and ventures such as offering internet service.

Other Bets, the home of Google's riskier, experimental businesses, lost $732 million in the quarter, versus a loss of $633 million in the same period a year earlier.

Related Articles