Google parent Alphabet Inc. reported quarterly results that exceeded Wall Street estimates Tuesday, initially propelling shares up 7% in after-hours trading. The company’s board also announced a 20-for-1 stock split.
The search-engine giant
GOOGL,
GOOG,
dominant in global digital advertising, posted net income of $20.6 billion, or $30.69 a share, in its fiscal fourth quarter, compared with net income of $15.2 billion, or $22.30 a share, in the same quarter last year.
Revenue after removing traffic-acquisition costs ($13.4 billion) increased to $61.9 billion from $46.43 billion in the year-ago period. Overall revenue was $75.3 billion, up 32%. Analysts surveyed by FactSet had estimated net income of $27.68 a share, on ex-TAC revenue of $59.25 billion.
Equally important, Alphabet’s operating margin improved to 29% in the quarter, vs. 28% in the same quarter a year ago.
“[The fourth quarter] saw ongoing strong growth in our advertising business, which helped millions of businesses thrive and find new customers, a quarterly sales record for our Pixel phones despite supply constraints, and our Cloud business
continuing to grow strongly,” Alphabet Chief Executive Sundar Pichai said in a statement announcing the results.
Google’s total advertising rose to $61.2 billion from $46.2 billion a year ago. Search comprised $43.3 billion, up from $31.9 billion a year ago. YouTube ad sales continued to outperform, jumping to $8.6 billion from $6.9 billion a year ago.
Google’s Cloud revenue soared 45% to $5.5 billion, though the division continues to trail rivals Amazon.com Inc.
AMZN,
and Microsoft Corp.
MSFT,
in cloud revenue.
Google’s stock is down 5% so far this year. The broader S&P 500 index
SPX,
has declined 4.6% in 2022.
This post was originally published on Market Watch
