TheStreet’s Luc Olinga covers Alphabet’s fourth-quarter earnings report and conference call with management.
Alphabet (GOOGL) – Get Alphabet Inc. Class A Report continued its track record of beating expectations when it reported December quarter earnings after the close on Tuesday.
The company also unveiled a 20-for-1 stock split.
The internet giant reported earnings per share of $30.69 versus consensus expectations of $27.68, according to FactSet, while quarterly revenue of $75.3 billion beat estimates of $72.26 billion.
Google’s advertising revenue came in at $61.24 billion for the quarter, up from $46.20 billion the same time last year.
Investors were cheering the stock after hours. Shares of were jumping 6.70% to $2,942.28.
Here are key numbers:
Earnings per share (EPS): $30.69 vs $27.34 expected, according to FactSet
Revenue: $75.33 billion vs $72.26 billion expected, according to FactSet
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
Traffic acquisition costs (TAC): $13.43 billion vs. $12.84 billion expected, according to StreetAccount. Investors tend to focus on acquisition costs, TAC, at Google. Basically, the expenses made by Google to get people on its website and to keep them there. Analysts expect traffic acquisition costs to rise, but at a slightly slower pace than the company’s revenue growth.
“Our fourth quarter revenues of $75 billion, up 32% year over year, reflected broad-based strength in advertiser spend and strong consumer online activity, as well as substantial ongoing revenue growth from Google Cloud. Our investments have helped us drive this growth by delivering the services that people, our partners and businesses need, and we continue to invest in long-term opportunities,” said Ruth Porat, CFO of Alphabet and Google.
Luc Olinga, TheStreet’s tech Lead, will be live-blogging Alphabet’s earnings report, which is typically published at 4:15 P.M. Eastern Time, along with an earnings call scheduled for 5 p.m. Eastern Time. Please refresh your browser for updates.
