Google posts record profits, highlights Alphabet holding company details

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Date: Monday, February 1st, 2016, 14:26
Category: Finance, Google, News


Google just turned in some amazing quarterly numbers.

Alphabet, Google’s holding company, reported its fourth quarter earnings on Monday, the first ever in two segments, with separate figures its core business and its motley moonshots.

Google altogether beat expectations, reporting net revenue, minus partner site payout, of $17.3 billion on $8.67 earnings per share. Wall Street was looking for something around $16.9 billion on $8.10 in profit.

More important to Wall Street’s concerns, Google was able to show a meaty profit margin, especially when its costly venture projects are stripped away.

As such, the profit margin rose, though not by much. For this quarter, Google’s operating income was $6.7 billion for a margin of 32%. For the same quarter last year, Google reported $5.6 billion in operating income, a 31 percent margin.

The stock went up 8.24 percent in after hours trading.

Google reported a boost in its Google Ad metrics, paid clicks trending up while cost-per-click trended down. For the holiday quarter, paid clicks rose 31 percent annually but CPC dropped 13 year-on year. The prior quarter those figures were 23 and 11 percent, respectively.

The company saw $2.1 billion for its other sales, including Google Play, hardware and enterprise sales. This is an improvement over the $1.95 billion in the same quarter of last year.

Where Google’s other companies are concerned, from its X robotics lab, its Nest smart-home unit and its two healthcare companies. the eight other companies in Alphabet not named Google brought in $448 million in 2015.

The Alphabet companies themselves lost a total of $3.57 billion. Analysts were guessing in a range from $2 to $6 billion.

Alphabet also reported $869 million in capital expenditures. Google spent $3.55 billion in capex during the same quarter a year ago. And it spent $2.37 billion last quarter, before the reporting split.

Stay tuned for additional details as they become available.

Via Re/code

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