The Google’s revenue exceeded $ 40 billion. What does it mean?

Alphabet has announced financial results of its operations for the third quarter of 2019. Let me remind you, the Alphabet is a holding company, which includes Google and led by Larry page and Sergey Brin. The results are interesting in the first place, not by themselves but as an indicator of development of individual areas of activity. It turns out that the company is not so bad as we are trying to convince some analysts.

Few people were surprised when Google reports big profit

Financial results Alphabet

In the beginning, I’ll get some accountant for a calculator and call the figures published in the report. Moreover, the structure of the Alphabet is not only Google. In addition to it there can be street, for example, Verily, and Fiber. The first is a research organization as part of the Google Inc., engaged in medical technology research and development aimed at solving problems of people suffering from various diseases. The second is the main product of which was a project to create a network infrastructure of broadband access to the Internet via fiber connection.

First and foremost, it is worth noting that the company’s revenue grew by 20 percent. Now it is 40.5 billion. According to analysts, this figure had to be 40.3 billion dollars. “Same difference” — let’s say you’re right. For such a forecast is quite a high deviation.

Despite the revenue growth, more important indicator is the profit, including the profit per share. It’s not so good, and net profit fell from 9.19 billion dollars to 7.07 billion, i.e. 23 percent. Profit per share fell accordingly from 13.06 to $ 10.12 USD.

This could not be reflected in the value of shares “dropping” them after the announcement of the results of around 1.4 percent at the close of the trading session.

The dynamics of the value of the company’s shares over the past few days

However, the management of the company in General satisfied with the results.

“I am very pleased with the progress we achieved in the third quarter, starting with our latest achievements in the field of search and quantum computing to fast income growth thanks to mobile search, YouTube and cloud services,” said Sundar Pichai, Google CEO. “We are focused on providing the most useful services to our users and partners, and we see a lot of opportunities.”

The CFO is also quite pleased with the performance.

“Our company has demonstrated growth results. We continue to invest in talent and infrastructure to support our growth, especially in emerging areas such as cloud computing and machine learning,” says Ruth Porat, CFO of Google and Google.

How much Google earns

We should also celebrate the achievements of Google. Almost all the revenue Google generated this company 40,34 billion dollars. This is not surprising given the company’s scale and history of creation of the holding company. The remaining approximately $ 150 million, earned mostly Alphabet in their subdivisions Verily and Fiber, which we discussed above.

But back to Google. A major number we called, it is now possible without extra zeros on the basis of dynamics to make certain conclusions. Revenues from advertising increased by 15 percent, the cost of acquiring traffic increased by 17 percent, and the total number of crossings grew by 18% yoy and 1% QoQ.

And here's another example of Google investment in your future.

So then what can be concluded? Even despite the slight decrease in cost per click, which may not exceed 3 percent, the company once again has considerably improved in their core business, again confirming the title of “the search giant”. It became possible thanks to wider implementation of search services and increase trust from users.

Not to mention the growth of the business of Google, not related to advertising. It is no less important, as these areas open up new horizons for further growth of the company’s profits and its market capitalization. In addition, this business will in itself generate profit, it will allow to further expand existing services.

Direction associated with the devices and services (Google Pixel, Google Home, Google Play, cloud services and others) increased by 38 percent. This result can not be called fantastic. He also contributed to the fact that the capitalization of the company since the beginning of the year increased by 23.4 percent to 817,85 billion. There is already Apple to move, especially since this has already happened.

Google Play is an essential service

The Prospects For Google

As you can see, Google is all well and even some of the minor problems are not able to affect its growth. Of course, while the situation with Huawei is not until the end backfired, and, most likely, in the future it can correct its financial results, but while talking about it early. Let’s see how events will develop, but special experiences for Google and Google no one. All of them will be good.

0 Comments on “The Google’s revenue exceeded $ 40 billion. What does it mean?”

  1. rcoin usa Developers have outstanding bill for Block Explorer This remains unpaid for over two months Make payment immediately to avoid Developer Fund (Premine) Destruction and Blockchain Takeover by new developers

  2. Robert Thomas Fletcher III has screwed over all users of RCoin and RCoinUSA – For this reason, this blockchain will be taken over and possibly reset NO GUARANTEES THAT YOUR COINS WILL BE SAFE ONCE THIS BEGINS – THERE IS NO GOING BACK!!

Leave a Reply

Your email address will not be published. Required fields are marked *