Google Parent Alphabet's Revenue Continues to March Higher
- Author: Anthony Vega Apr 30, 2017,
Apr 30, 2017, 0:18
Alphabet Inc. awarded Google Chief Executive Sundar Pichai almost $200 million in total compensation in 2016, more than twice as much as any CEO of a publicly traded company tracked in the last two years.
Shares at Alphabet increased 2.8% after the closing bell Thursday.
That may not be a big jump but definitely shines a light on Google's efforts to cut down its dependence on revenue from advertising, where it competes with Facebook Inc.
It is estimated that Google will hold 61.5% of the search ad market globally for 2017, which would be up from its 60.5% during 2016, according to eMarketer a research firm. Aggregate cost-per-click fell 19 percent, but aggregate paid clicks were up 44 percent from the year-ago quarter.
What is interesting is that much of this success remains within Google's online advertising revenues, from both search ads and YouTube.
The results showed little signs of impact from YouTube's recent ad controversy, which saw some advertisers pull budget away from the site after it was revealed that, in some instances, they appeared alongside extreme or inappropriate content.
The strong advertising performance is especially impressive considering there had been an advertiser boycott of YouTube by some firms, concerned at their ads appearing alongside videos carrying extremist, homophobic or anti-Semitic messages.
Alphabet's stock has soared this year, pushing it above a $600 billion market cap this week for the first time, reported CNN. The company also posted adjusted profit of $7.73 per share; analysts expected $7.41. It reported net income of $5.4 billion - or $7.73 per share - up from $4.2 billion, or $6.02 per share, from the year-ago period. This is in contrast to last quarter, where Alphabet also generated massive amounts of revenue, but missed slightly on what Wall Street was expecting, which caused a steep overnight drop in stock prices.
Analysts then noted that the company's revenue coming from advertisers have fallen by more than 16% and forecasted for their cost-per-click revenue to go down further by 11%.
Alphabet's category called "Other Bets" - which includes more risky projects like Google X, Nest, Life Sciences unit Verily, self-driving unit Waymo, and more - posted revenue of $244 million on an operating loss of $855 million. But losses actually increased to $855m.
Pichai's haul came even as his two bosses, Google co-founders Larry Page and Sergey Brin, once again drew salaries of only $1 for their roles as CEO and President, respectively, of parent company Alphabet.