Google parent Alphabet reported higher revenue than expected in the fourth quarter. Shares appeared in excess of 9% in extended trading.
The company also announced a 20-for-1 split that will take effect in July.
Here are the key numbers:
Earnings per share (EPS): $ 30.69 vs $ 27.34 expected, according to Refinitiv
Revenue: $ 75.33 billion vs $ 72.17 billion expected, according to Refinitiv
YouTube advertising revenue: $ 8.63 billion vs. $ 8.87 billion expected, according to StreetAccount
Google Cloud revenue: $ 5.54 billion vs $ 5.47 billion expected, according to StreetAccount
Cost of acquisition of traffic (TAC): $ 13.43 billion vs. $ 12.84 billion expected, according to StreetAccountThe alphabet reported revenue growth of 32%, which also proves that it has been able to withstand the pressures of the epidemic and inflation.
The results follow a year of inactivity. The stock grew 65% last year, beating all Big Tech companies with more than three times more profits in the S&P 500.
Google’s advertising revenue generated revenue of $ 61.24 billion per quarter, up 33% from $ 46.2 billion over the same period last year.
Philipp Schindler, chief business officer of Google, said marketing was a major factor in the growth of ads year after year. Media and financial use were also important.
Revenue from YouTube ads is the only metric that has fallen short of analysts’ expectations. The company was trying to challenge TikTok for a service called Shorts. Alphabet CEO Sundar Photosi said the company has more than 15 billion active users worldwide. That metric did not change in his last review of July 2021.
The company’s cloud has reported revenue growth of 45% to $ 5.54 billion. Cloud performance losses reached $ 890 million over the quarter, which reduced the loss of $ 1.14 billion last year. However, it grew from the third quarter, when the unit lost $ 644 million.
The backlog of alphabets has risen by more than 70% to $ 51 billion, which includes the cloud business, Photosi said in a lead call. He added that the company has seen annual growth of 65% in the number of cloud contracts worth more than $ 1 billion.
Revenue from the company’s Other Betting umbrella, which includes the Waymo driving unit and the Verily health science unit, has grown to $ 181 million – down slightly than last year.
Another portion of Google’s revenue, which includes hardware, Play Store, and non-advertising YouTube revenue, received $ 8.16 billion in sales, up from $ 6.67 billion last year. Photosi said the company has seen a “regular sales record” of its Pixel smartphone despite purchasing problems.
Traffic Acquisition Costs (TAC), a metaphor used to show how much a company pays for other websites in order to gain traffic, has reached higher than Wall Street expected at $ 13.43 billion.
Google has added about 6,500 XNUMX full-time employees to its figure, said CFO Ruth Porat on the phone. The total number of full-time employees is 156,500 full-time employees. Porat said the company expects that growth rate in the coming areas.
In dividing its stock, Alphabet is following in the footsteps of Apple and Tesla over the past few years.
Divorce does not change the basics of business. Instead, it will lower the price of each stock, a move companies often make when their stock trades in the thousands of dollars. If the split were to take place by the end of Tuesday, the cost of each share would be from $ 2,572.88 to $ 128.64, and each existing holder would receive an additional 19 shares in each share.
Shares of alphabet stocks began the year with a tail, declining 6.6% in January as Wall Street trades on stocks. However, with the after-hours profit, Alphabet turned into a yearly one.