The tech giant reported earnings of $31.84 billion in revenue, versus analysts’ expectations of $31.33 billion. The $31.84 billion is Alphabet’s total revenue minus the company’s TAC, or traffic acquisition costs. Earnings per share came in at $12.77. Analysts were expecting $10.86 per share.
The stock was down 3% after hours.
Revenue from advertising topped out at $32.6 billion compared to the previous quarter, which came in at $28.95 billion.
TAC came in at $7.4 billion versus last quarter’s $6.6 billion.
Operating losses for Google’s Other Bets, such as Google Fiber and its health-based Verily, increased from $748 million in Q4 2017 to $1.33 billion in Q4 2018.
Capital expenditures came in at $7.08 billion, versus expectations of $5.66 billion.
Profit margins for Google have grown slimmer as the company has looked to expand more into the hardware space it its own smartphones and smart speakers, and pushed deeper into the cloud computing market to compete with Amazon (AMZN) and Microsoft (MSFT).
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