Fourth-quarter sales increased 24 percent to $32.3 billion, above the average analysts' estimate of $31.9 billion, according to Thomson Reuters I/B/E/S. The boost in revenue was offset by rising costs, leading the internet giant to miss its predicted profits for the quarter, and resulting in a share price drop of over five per cent. Revenues at "other bets" lifted to United States dollars 409 million from 262 million with the operating loss narrowing to USD 916 million from a loss the year earlier of 1.088 billion.
For its part, Amazon earned a net profit $1.9 billion, or $3.75 a share, on a 38 percent jump in revenue, to $60.5 billion. Alphabet raked in $32.3 billion in revenue in its fourth quarter, and just about $4.7 billion came from what Alphabet refers to as Google's "other revenues".
Alphabet's "Other Bets", which include self-driving vehicle firm Waymo, Google Fiber, the Nest home devices unit and other businesses, logged an operating loss of $1.1 billion on revenue of just $262 million.
Wall Street investors seemed displeased with Google's results relative to expectations, sending the stock down more than three percent in after hours trading. Ad revenues were $27.2 billion, a more than $5 billion increase vs. a year ago. Last quarter, losses in this category totaled $812 million. The fourth quarter 2017 includes a provisional tax benefit for the impact of the U.S. Tax Cuts and Jobs Act of 2017 of approximately $US789 million, Amazon said.
The Chocolate Factory also claimed the number of Google cloud deals that bring in more than $1m had more than tripled from 2016 to 2017, and that there are 4m paying G Suite customers.
For those keeping track, that's the most money Alphabet has pulled in from its "other revenues" segment, which is where you and I probably spend most of our money.
Alphabet also announced that John L. Hennessy will replace Eric Schmidt as the chairman of the company. The loss from those projects narrowed to US$916 million from US$1.1 billion.
"As we've consistently emphasised, alongside the continued momentum in our advertising business, we are focused on building a second wave of growth within Google over the medium and long-term, which includes the rapidly growing revenue businesses in Google, cloud, hardware and YouTube", Pichai told a conference call.
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