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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Comments (3)

3 responses to “Google’s Parent Company Announces Quarterly and Annual Earnings”

  1. red.radar

    I guess the people in the background of the photo are helping Alphabet find a profitable business division that is not named Google.

    ... The lady seen through the handle bars...Is she taking a picture with a tablet?! what are those people doing just walking around with their phones? taking pictures of bland square buildings? Are they playing Pokemon?

  2. dontbe evil

    and next year with the ban of ad blockers on chrome, their integrated "ad blocker", their internet ads business ... where they have the most of the market share and business, I'm sure they'll earn even more ... hopefully people and the antitrust will wake up in time

    • minke

      In reply to dontbe_evil:

      Most people don't really mind being served "more relevant ads," though as to what I see I'm surprised that advertisers waste their money. Most of the ads I see are irrelevant to me, despite me using many Google services. I usually have no idea why they are showing me the ads they do, except when I order something online and then I see ads for the same product for weeks. It seems a waste of advertising dollars to repeat the same ad over and over again when I have already purchased the product, but what do I know?