Google’s parent company, Alphabet today announced financial results for the quarter and fiscal year ended December 31, 2017. The company posted a record 24% increase in revenue with $32.323 billion compared to the $26.064 billion in Q4 2016. The company posted revenues of $110.9 billion in complete 2017.
Google’s core ad business remains strong pulling 27.27 billion in revenue with 24% YoY growth. TAC or traffic acquisition costs continue to grow as Google shifts its business focus to advertising and mobile search ads which resulted in nearly $6.5 billion, up 33% YoY in the Q4 which ended on December 31st, 2017. However, the company posted a net income of $3,020 billion which is a dip compared to the $5,333 billion YoY.
The company currently has 80,110 employees and it reported earnings per share of $9.70 which is less compared to $9.90 which was expected. Alphabet mentioned that the one-time tax hit caused a net loss of $3.02 billion in the fourth quarter. However, the revenue grew $32.323 billion which is higher than analyst expectations of $31.86 billion.
Google’s cloud business, and sales of products like the Pixel smartphone and Google Home, and its Google Play app store, reported $4.69 billion in revenue. Other bets revenue reported a revenue of $409 million in Q4 2017 on operating losses of $916 million. The tax expenses resulted in a net loss of $3.02 billion, or $4.35 a share.
Ruth Porat, CFO of Alphabet said:
Our business is driving great growth, with 2017 revenues of $110.9 billion, up 23% year on year, and fourth quarter revenues of $32.3 billion, up 24% year on year. Our full year operating income growth continues to underscore our core strength, and on top of this, we continue to make substantial investments for the long-term in exciting new businesses.