Google parent Alphabet boosts revenue 21%

Google parent Alphabet boosts revenue 21%

For a point of comparison, Google's "other revenues" segment "only" brought in $3.4 billion in revenue in the last quarter of 2016, so the business has nearly doubled in the last two years.

Alphabet made a profit of $8.9 billion in the fourth quarter of past year compared with... Chief financial officer (CFO), Ruth Porat, said that the capital expenditure (capex) will help Alphabet's growth.

A booming digital advertising market lifted Google's fourth-quarter advertising sales by a fifth and helped Alphabet, its parent, to beat Wall Street's profit and revenue forecasts last night.

It reported $39.3 billion in revenues for the fourth quarter, up 22 percent from the previous year, beating expectations of $38.9 billion.

The Google name is displayed outside the company's office in London, Britain.

"Changes to our data privacy practices, as well as changes to third-party advertising policies or practices may affect the type of ads and/or manner of advertising that we are able to provide which could have an adverse effect on our business", the company wrote in the filing.

Still, profits at the Mountain View, California-based company were $8.9 billion in the three months through September, or $12.77 per share, higher than analysts expected.

Revenue from Google's Other division, which includes cloud and hardware, rose 31 percent to $6.49 billion.

Money spent on Google hardware, such as Pixel smartphones or Nest smart home devices, was also a factor along with investments in datacenters essential to Google's growing cloud computing business.

All eyes are on Thomas Kurian, the recently hired cloud services executive who's attempting to turn the Google Cloud Platform into an enterprise business.

R&D spending has risen 40% and Alphabet's total headcount has increase by 4,000 going into the last quarter of 2018. Last month, French privacy regulators fined Google 50 million euros ($57 million) for not giving consumers enough information when it asked them to sign over access to their information. Google is well behind rivals like Amazon Web Services and Microsoft in the cloud infrastructure market, and at the moment it is spending more than them per quarter on capital expenditures to support that business.

Other businesses, such as health venture Verily and self-driving start-up Waymo, were more disappointing at $154 million in revenue.

Alphabet is expected to report its most recent quarterly results Monday afternoon. But operating losses also ballooned to $1.3 billion, a 78 percent increase since the year-earlier quarter. However, those operations showed a $1.3 billion operating loss. "We are very open to acquisitions".

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