Revenues: $31.15B vs. $30.29B expected
Because of a new accounting rule, Alphabet had to report the unrealized gains and losses from its investments in companies like Uber, and reported a $3 billion gain on equity securities.
Google's ads business posted $26.642 billion in revenue for the first quarter while its "other revenues," which include its cloud business and hardware sales was nearly $4.3 billion. That's up from $3.2 billion year-over-year and includes revenues from smart-home unit Nest for the first time.
This quarter, Google changed its monetization metrics for Google's Network properties from clicks to impressions.
Google properties, like search and YouTube, saw paid clicks (how many times people clicked its ads) increase 8 percent year-over-year while cost-per-click, or how much it can charge for its ads, decreased 7 percent year-over-year. Properties revenues were nearly $22 billion.
Its Network Members' properties, which includes third-party sites, saw its impressions increase 5 percent year-over-year and its cost-per-impression decrease 10 percent year-over-year. Network revenues were $4.6 billion.
While Google's advertising business still pumps out the profits, Alphabet also breaks out the revenues and losses for its "Other Bets," like healthcare company Verily and internet service provider Fiber. Other Bets posted Q1 revenue of $150 million on operating losses of $571 million. Previously, this was where Alphabet posted Nest revenues, which explains why revenue declined from $409 million in Q4.
Google's total traffic acquisition costs, which includes the money it pays to phone manufacturers, like Apple, that use its services, like search, hit $6.28 billion, or 24 percent of Google's advertising revenues. That's up from 22 percent during Q1 2017. On the company's earnings call, chief financial officer Ruth Porat said that that increase reflects the fact that mobile search and programmatic advertising have higher TAC.
Alphabet's operating expenses were $10.7 billion, which was up 27 percent year-over-year. Porat attributed that increase primarily to research and development.
https://www.cnbc.com/amp/2018/04/23/alphabet-earnings-q1-2018.html
Submitted April 23, 2018 at 04:05PM by gronkspike25 https://ift.tt/2qWxp1U
