How Alphabet’s Antitrust Fine Affected Its Earnings
Alphabet topped earnings and revenue estimates
The search engine giant’s earnings for 2Q17 were $5.01 per share, down 28% from the same quarter last year. This fall was due to the $2.7 billion antitrust fine charged by the European Union last month. Google said that, if not for the massive fine, it would have earned $8.90 per share. However, the company still managed to beat analysts’ EPS (earnings per share) expectations of $4.83.
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The company’s quarterly revenue rose 22% from the same quarter last year, to $26 billion. Last year, the company earned $7 per share on revenue of $21.5 billion. As the graph above shows, the revenue growth of the company has been robust, despite the size of the company. Alphabet’s annual revenue growth has accelerated steadily, from 12.2% in fiscal 3Q15 to 22% in fiscal 2Q17.
Google’s cloud business is galloping
Google’s other revenue, excluding advertising and including the Google Play Store and the cloud business, grew 42% from 2Q16 to $3.1 billion. The Other segment now makes up 12% of the company’s total revenue. The company’s employee count rose from 66,575 in fiscal 2Q16 to 75,606 in 2Q17.
The company’s stock slipped 3.1% to $967.45 in after-hours trading on Monday as investors booked profits. The tech behemoth’s shares had soared by more than 24% year-to-date as of Monday’s close. Keep reading for more on Google’s results, including ad revenue and its cloud business.