Welcome to WebmasterWorld Guest from

Forum Moderators: goodroi

Message Too Old, No Replies

Alphabet Q3 Revenue $27.8 billion, up 24pct

10:10 am on Oct 27, 2017 (gmt 0)

Administrator from GB 

WebmasterWorld Administrator engine is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month

joined:May 9, 2000
votes: 785

Alphabet has reported Q3 revenue of $27.8 billion, up 24% year-on-year, with net income up to $6.73 billion.
Other bets revenues were up to $302 million, with a slightly narrowing loss of $812 million.

Full earnings release (PDF) [abc.xyz...]

For those of you interested in the breakdown, there are some interesting figures on the Traffic acquisition costs (TAC) to Google Network Members and distribution partners:
Three Months Ended September 30, 2016 to Three Months Ended September 30, 2017
TAC to Google Network Members $2,623 (2016) $3,101(2017)
TAC to Google Network Members as % of Google Network Members' properties revenues
70% (2016) 71%(2017)
TAC to distribution partners $1,559(2016) $2,401(2017)
TAC to distribution partners as % of Google properties revenues
10%(2016) 12%(2017)
Total TAC $4,182(2016) $5,502(2017)
Total TAC as % of Google advertising revenues 21%(2016) 23%(2017)

Cost per click grew only 1% quarter-on-quarter, but was down 18% year-on-year. At least it seems to have stemmed the downward trend on CPC. Clearly, the volumes must be up significantly for it to have increased revenues so much.

Stock in the company were trading at over $1,000 per share.

Clearly, other bets are improving, but they appear to have a long way to go before it balances the scales away from ads to the other bets.
12:38 pm on Oct 27, 2017 (gmt 0)

Senior Member

WebmasterWorld Senior Member Top Contributors Of The Month

joined:Apr 1, 2016
votes: 589

Very interesting as always. [TAC == Traffic Acquisition Cost]

The two key points IMO:
1- Google Network Members' properties revenues 3,732(2016) vs. 4,342(2017) => That is $600M increase in revenue mostly as a result of AdSense publishers.
2- TAC to Google Network Members as % of Google Network Members' properties revenues 70%(2016) vs. 71%(2017) => For those that claim that Google is stealing ad clicks away from AdSense publishers, this would suggest otherwise. There was only 1% increase an that is likely to be statistically insignificant (==no change).

Overall the results show the importance of growing traffic volumes. Their TAC was up, and CPC was flat but they still managed to grow revenues. The only way that is possible is by increased traffic. My guess is that the increase in TAC is likely due to saturation effect, where each additional user acquired is costing more than the previous one. The traffic growth is still profitable but in the long run this will be decreasingly true.

Join The Conversation

Moderators and Top Contributors

Hot Threads This Week

Featured Threads

Free SEO Tools

Hire Expert Members