The tech juggernaut posted earnings of $9.70 per share during the period, missing the $9.98 per share that analysts polled by Thomson Reuters were calling for. GOOG and GOOGL shares dipped more than 2% apiece after the bell on the news.
However, the Google parent company impressed on the revenue front, raking in $32.32 billion, marking a 24% climb compared to the year-ago quarter. The Wall Street consensus estimate called for revenue of $31.86 billion, per Thomson Reuters.
Most of the company’s success during the closing of fiscal 2017 came from its growing ads business, which raked in the majority of its revenue at $24.27 billion during the period. The rest of Alphabet’s business — including its enterprise segment, hardware sales and app store — garnered $4.69 billion in revenue.
The company’s ads were getting clicked more than before and more than expected as its aggregate paid clicks rose 43% compared to the year-ago quarter, topping the 42.1% increase that StreetAccount forecasted.
Alphabet’s CPC saw a 14% decline year-over-year, compared to Wall Street’s consensus estimate of a 14.6% fall, according to StreetAccount. Another positive during the quarter was the company’s traffic acquisition costs (TAC), which Google plays to manufacturers.
This figure was $6.45 billion, or 24% of the company’s advertising revenues for the period. The recent U.S. tax law change set Alphabet back $9.9 billion as a one-time expense during the quarter.