Alphabet posts whopping $39.2B in revenue for Q4 2018, with only Google making any profits

Alphabet this Monday posted its earnings for the fourth quarter of its fiscal year 2018. The Google parent company posted an impressive revenue total of $39.2 billion for the quarter, representing a 22% increase year-over-year for the same period in 2017, when the company reported earnings of $32.3 billion.

While it was certainly a strong showing by the company, and even beat expectations, the growth in revenue was slightly lower than what the company achieved a year ago (22% compared to 24%). While its net income also increased from $7.6 billion in Q4 2017 to $8.2 billion in Q4 2018, the company's margins dropped from 24% to 21%.

Alongside these, perhaps the other important metric which contributed to a fall in Alphabet's share price after the earnings were posted was a market drop in the company's ability to control the pricing for ads on Google properties. Compared to Q4 2017, Alphabet saw a 29% decrease in this regard; and a 9% decrease compared to the previous quarter.

An ever-present botch on the company's financial statements since Alphabet's inception, the 'other bets' category continued to make losses in Q4 2018. Alphabet reported an operating loss of $1.3 billion for this category during the quarter, an increase from the $748 million write-offs a year ago. This effectively makes Google the only of Alphabet's subsidiaries that actually turns a profit.

It's not all doom and gloom for the company's new ventures, however. Though they made losses, Alphabet's experiments like Waymo and Verily did show an increase in revenue by 17.5% year-over-year. Google, too, showed impressive growth in its 'other revenues' category, which accounts for its cloud and hardware businesses.

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