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Alphabet (GOOGL) Q4 2021 earnings

Sundar Pichai, CEO of Alphabet, in Brussels, Belgium, January 20, 2020.

Geert Vanden Wijngaert | Bloomberg | Getty Images

Google’s parent company Alphabet reported earnings after the clock. Here are the results.

  • Earnings per share (EPS): $ 30.69 vs. $ 27.34 expected, according to Refinitive
  • Income: $ 75.33 billion against the expected $ 72.17 billion according to Refinitiv

Wall Street is also keeping an eye on other key figures in the Alphabet report.

  • YouTube Ad Revenue: $ 8.87 billion is expected, according to StreetAccount
  • Google Cloud Revenue: $ 5.47 billion is expected, according to StreetAccount
  • Traffic acquisition costs (TAC): $ 12.84 billion is expected, according to StreetAccount

Alphabet reports results shortly after completing a year of outperformance. The stock jumped 65% in 2021, beating all of its Big Tech mates and tripled its gains on the Nasdaq.

Based on analyst estimates, revenue increased about 27% in the fourth quarter compared to a year earlier as the company’s dominant search engine and YouTube video service continued to fetch marketing dollars from the top brands.

YouTube has incorporated several e-commerce features in recent quarters and is experimenting with different formats. It has been trying to challenge TikTok with a service called Shorts, which CEO Susan Wojcicki said recently hit “5 trillion all-time views” since 2020.

During the quarter, the company announced it would pour more money into its physical property, including $ 1 billion to strengthen its London footprint. It happens even though Google is pushing its return to the office’s plans back due to the ongoing pandemic.

Alphabet also said in the fourth quarter that its self-driving car unit Waymo would expand into additional cities, including New York City. Waymo’s primary market has been Phoenix, but its cars recently began flooding the streets of San Francisco’s streets, where the company has tested its technology.

Alphabet’s top executives benefit from the strong financial results. The company said last month that four of its top-ranking executives, including CFO Ruth Porat, would receive a pay rise from $ 650,000 to $ 1 million. More importantly, they receive stock rewards worth between $ 23 million and $ 35 million, split between performance-based equity and shares earned over time.

But Google has its share of challenges.

Employees express concern about a range of issues, ranging from Google’s pursuit of a military cloud deal – the Joint Warfighting Cloud Capability Program (JWCC) – to vaccine mandates and the impact of inflation. Some are also saddened by the internal culture, saying that it is becoming more and more bureaucratic.

Alphabet’s stock has fallen about 5% since the start of 2022 as Wall Street has hammered on technology companies. Google has generally shown that it can withstand economic headwinds better than others in the industry. Investors will pay particular attention to the cost after Google said during the quarter that it is stepping up hiring.

This is breaking news. Please come back for updates.

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