Google exceeds Wall Street expectations

Internet & Home News

The “Other Bets” of Google are not yet profitable, with a run-up to the future that has cost more than a billion dollars to the online research giant. On the page, you will find all the numbers of the Alphabet quarter.

Alphabet, the parent company of Google, surpassed Wall Street’s estimated revenue targets in the last three months of the year, yet losses in the “Other Bets” business, or bets for the future, have been increasing. Therefore, in the quarterly Big G, the ups and downs with investors who have also gained some doubts regarding the increase in payments to commercial partners? In response, Alphabet’s shares have dropped to 3.5% in after-hours trading.

Alphabet’s net revenue grew by 23% in the final three months of 2018 compared to the previous year, but payments to partners increased by 26%. To worsen the situation, however absolutely solid, was the “other bets” division, which includes the company’s investments in favor of innovations that will depict the future of various technologies. Within the division, there are subsidiaries of various categories.

Among these, for example, Waymo and Verily: the first is a company that deals with the development of self-driving cars; the second one deals with innovations in the medical field, such as contact lenses for diabetes detection, Nan particle platforms for disease detection, and more. These are companies that are leading the way towards a future in which technology will help people in the most desperate situations, but are now betting at a loss.

On a purely numerical level, the financial losses of the “other bets” branch were, at the end of 2018, the worst in the last two years. While the earnings per share exceeded the Wall Streets targets, on the other hand, the operating losses of the “bets” for the future were $ 1.3 billion. Moreover, capital expenditures more than doubled compared to the previous year, exceeding 25 million dollars.

Alphabet Q4 2018 in numbers

In short, Alphabet reported an excellent quarter: net sales amounted to 31.7 billion dollars with a growth – as mentioned above – of 23% compared to the same period last year and above 31.33 billion expected from analysts; the gain per share was 12.8 dollars (10.9 dollars those expected by analysts); the turnover of other bets was 154 million compared to the 131 million dollars last year, for an operating loss of 1.3 billion compared to 750 million in the last quarter of 2017.

Google also invested $ 7.4 billion in traffic acquisition, about 23% of advertising revenue when it reinvested 24% of the division’s revenue in traffic last year. In December 2018 Google had 98,771 employees, about 4 thousand more than at the end of 2017.

READ ALSO: Huawei to launch 5G smartphone foldable on February 24

Leave a Reply

Your email address will not be published. Required fields are marked *