Google’s Parent Company Announces Quarterly and Annual Earnings

Posted on February 4, 2019 by Paul Thurrott in Google with 3 Comments

Alphabet—Google’s parent company—today announced that a net profit of $8.9 billion on revenues of $39.3 billion in the quarter ending December 31. The quarter also marked the end of its fiscal year 2018, in which it posted a net profit of $30.7 billion on revenues of $136.8 billion.

“In 2018, we delivered strong revenue growth, up 23 percent year-over-year,” Alphabet CFO Ruth Porat said in a prepared statement. “With great opportunities ahead, we continue to make focused investments in the talent and infrastructure needed to bring exceptional products and experiences to our users, advertisers, and partners around the globe.”

The results beat analyst expectations. And they are roughly even with Microsoft’s quarterly results: The software giant posted net income of $8.4 billion on revenues of $32.5 billion in the same quarter.

That said, Alphabet is a very different company than Microsoft, and not just because the latter firm would never allow a top-level executive to celebrate advertisers in the one published quote it provided with its earnings. Alphabet is comprised of several different companies, only one of which, Google, that earns a profit or appreciable revenues.

On that note, Google earned a net income of $9.7 billion on revenues of $27 billion. So Google is responsible for 109 percent of Alphabet’s profits and 69 percent of its revenues.

I’ll see if Alphabet discusses anything about Google’s non-advertising efforts during its earnings conference call.

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