Google Parent Alphabet Profit Surges on Mobile, Video Ads

Google Parent Alphabet Profit Surges on Mobile, Video Ads

HIGHLIGHTS

  • Alphabet’s net income climbed 27 percent to $5.06 billion
  • Google is competing with Facebook for dominance in mobile advertising
  • Advertising accounted for 89.1 percent of Google’s total revenue

Google parent Alphabet Inc bested analysts’ estimates for third-quarter profit and revenue on Thursday as the search company showed it has honed its core business for the mobile era and is closing in on the next wave of computing.

Propelled by strong advertising on mobile devices and video site YouTube, Alphabet’s net income climbed 27 percent to $5.06 billion (roughly Rs. 33,839 crores). Revenue jumped 20 percent to $22.45 billion (roughly Rs. 1,50,147 crores), marking the search giant’s seventh straight quarter of double-digit revenue growth.

(Also see: Google Pixel XL Review)

The company authorized a $7 billion repurchase of its Class C stock, pleasing investors who had been craving more after a $5 billion repurchase last year.

Google is competing fiercely with social network Facebook for dominance in the fast-growing mobile advertising market. Google Chief Executive Sundar Pichai touted the company’s gains in the space, and was bullish about recent product launches such as the Google Assistant, the Google Home smart speaker and refinements to the enterprise cloud business.

The products are aimed at the rise of voice search, which many analysts believe will succeed keyboards and touch screens as a primary way users interact with devices.(Also see: Google Assistant Goes Head to Head With Apple’s Siri in Comparison Video)

“We feel well positioned as we transition to a new era of computing,” Pichai said in an conference call. “This new era is one in which people will experience computing more naturally and seamlessly in the context of their lives, powered by intelligent assistants and the cloud.”

Shares of Alphabet, the world’s No. 2 company by market value, were up 1.6 percent in after-hours trading.

The company posted third-quarter adjusted earnings per share of $9.06, beating expectations of $8.63 a share on revenues of $22.05 billion, according to Thomson Reuters estimates.

Google has been dogged by concerns about how it would nudge its vast web advertising business towards mobile, but the company’s recent performance has reassured Wall Street that the transition is well underway, said analyst Colin Gillis of BGC Partners.

“It’s showing that even though they’ve hit lifetime highs, there’s still room to run,” he said.

Advertising revenue, the company’s lifeblood, rose 18.1 percent to $19.82 billion (roughly Rs. 1,32,543 crores) in the third quarter. Paid clicks, or ads for which advertisers pay only when users click on them, rose 33 percent, compared with a rise of 29 percent in the second quarter.

Cost-per-click, or the average amount advertisers pay Google, fell 11 percent in the latest period, but investors are willing to forgive the slump, for now, as it suggests strong mobile growth, said analyst Kerry Rice of Needham & Co.

YouTube continued to post robust gains, Pichai said. Over the past year, Google, Facebook and Twitter Inc have all doubled down on video, a format where advertisers are willing to pay a premium for a few seconds of users’ undivided attention.

Advertising accounted for 89.1 percent of Google’s total revenue in the quarter, and analysts are eager for the company to tap new sources of growth.

One of the leading contenders is Google’s cloud business, which drove a 38.8 percent rise in the company’s “other revenue.”

“As we head into 2017, I expect cloud to be one of our largest areas of investment,” Pichai said.

A relatively late entrant to the cloud business, Google is trying to steal market share from industry leaders Amazon.com and Microsoft. Amazon on Thursday reported a 55 percent revenue increase in its cloud business.

“I would hesitate to say they are competing head-to-head, but they are making up for lost ground,” Rice said.

Alphabet’s “Other Bets” unit generated revenue of $197 million, primarily from Nest, Google Fiber and Verily units, Chief Financial Officer Ruth Porat said during the call.

(Also see: Google Fiber Halts Expansion Plans as Chief Steps Down)

Alphabet said this week it was pausing the rollout of Fiber, a high-speed internet service, in some US cities and that its leader, Craig Barratt, would leave.

Porat played down analysts’ concerns of instability at Other Bets, which has suffered a wave of executive departures, including Nest founder Tony Fadell, self-driving car technology chief Chris Urmson and, most recently, Barratt.

“As we reach for moonshots that will have a big impact in the longer term, it’s inevitable that there will be course corrections along the way, and that some efforts will be more successful than others,” Porat said.

Other Bets, which also includes research unit X, reported an operating loss of $865 million, down from a year-ago loss of $980 million. The narrowing loss suggests Porat is instilling the financial discipline investors have long hoped to see from the company, said Gillis.

“Everybody loves Ruth,” he said.

© Thomson Reuters 2016

Tags: Google, Alphabet Inc, Alphabet Earnings, Cloud, Sundar Pichai, Internet, Android, Apps, Mobiles, PC, Laptops, Wearables
[“source-smallbiztrends”]

Google Parent Alphabet Profit Surges on Mobile, Video Ads

Google Parent Alphabet Profit Surges on Mobile, Video Ads

HIGHLIGHTS

  • Alphabet’s net income climbed 27 percent to $5.06 billion
  • Google is competing with Facebook for dominance in mobile advertising
  • Advertising accounted for 89.1 percent of Google’s total revenue

Google parent Alphabet Inc bested analysts’ estimates for third-quarter profit and revenue on Thursday as the search company showed it has honed its core business for the mobile era and is closing in on the next wave of computing.

Propelled by strong advertising on mobile devices and video site YouTube, Alphabet’s net income climbed 27 percent to $5.06 billion (roughly Rs. 33,839 crores). Revenue jumped 20 percent to $22.45 billion (roughly Rs. 1,50,147 crores), marking the search giant’s seventh straight quarter of double-digit revenue growth.

(Also see: Google Pixel XL Review)

The company authorized a $7 billion repurchase of its Class C stock, pleasing investors who had been craving more after a $5 billion repurchase last year.

Google is competing fiercely with social network Facebook for dominance in the fast-growing mobile advertising market. Google Chief Executive Sundar Pichai touted the company’s gains in the space, and was bullish about recent product launches such as the Google Assistant, the Google Home smart speaker and refinements to the enterprise cloud business.

The products are aimed at the rise of voice search, which many analysts believe will succeed keyboards and touch screens as a primary way users interact with devices.(Also see: Google Assistant Goes Head to Head With Apple’s Siri in Comparison Video)

“We feel well positioned as we transition to a new era of computing,” Pichai said in an conference call. “This new era is one in which people will experience computing more naturally and seamlessly in the context of their lives, powered by intelligent assistants and the cloud.”

Shares of Alphabet, the world’s No. 2 company by market value, were up 1.6 percent in after-hours trading.

The company posted third-quarter adjusted earnings per share of $9.06, beating expectations of $8.63 a share on revenues of $22.05 billion, according to Thomson Reuters estimates.

Google has been dogged by concerns about how it would nudge its vast web advertising business towards mobile, but the company’s recent performance has reassured Wall Street that the transition is well underway, said analyst Colin Gillis of BGC Partners.

“It’s showing that even though they’ve hit lifetime highs, there’s still room to run,” he said.

Advertising revenue, the company’s lifeblood, rose 18.1 percent to $19.82 billion (roughly Rs. 1,32,543 crores) in the third quarter. Paid clicks, or ads for which advertisers pay only when users click on them, rose 33 percent, compared with a rise of 29 percent in the second quarter.

Cost-per-click, or the average amount advertisers pay Google, fell 11 percent in the latest period, but investors are willing to forgive the slump, for now, as it suggests strong mobile growth, said analyst Kerry Rice of Needham & Co.

YouTube continued to post robust gains, Pichai said. Over the past year, Google, Facebook and Twitter Inc have all doubled down on video, a format where advertisers are willing to pay a premium for a few seconds of users’ undivided attention.

Advertising accounted for 89.1 percent of Google’s total revenue in the quarter, and analysts are eager for the company to tap new sources of growth.

One of the leading contenders is Google’s cloud business, which drove a 38.8 percent rise in the company’s “other revenue.”

“As we head into 2017, I expect cloud to be one of our largest areas of investment,” Pichai said.

A relatively late entrant to the cloud business, Google is trying to steal market share from industry leaders Amazon.com and Microsoft. Amazon on Thursday reported a 55 percent revenue increase in its cloud business.

“I would hesitate to say they are competing head-to-head, but they are making up for lost ground,” Rice said.

Alphabet’s “Other Bets” unit generated revenue of $197 million, primarily from Nest, Google Fiber and Verily units, Chief Financial Officer Ruth Porat said during the call.

(Also see: Google Fiber Halts Expansion Plans as Chief Steps Down)

Alphabet said this week it was pausing the rollout of Fiber, a high-speed internet service, in some US cities and that its leader, Craig Barratt, would leave.

Porat played down analysts’ concerns of instability at Other Bets, which has suffered a wave of executive departures, including Nest founder Tony Fadell, self-driving car technology chief Chris Urmson and, most recently, Barratt.

“As we reach for moonshots that will have a big impact in the longer term, it’s inevitable that there will be course corrections along the way, and that some efforts will be more successful than others,” Porat said.

Other Bets, which also includes research unit X, reported an operating loss of $865 million, down from a year-ago loss of $980 million. The narrowing loss suggests Porat is instilling the financial discipline investors have long hoped to see from the company, said Gillis.

“Everybody loves Ruth,” he said.

© Thomson Reuters 2016

Tags: Google, Alphabet Inc, Alphabet Earnings, Cloud, Sundar Pichai, Internet, Android, Apps, Mobiles, PC, Laptops, Wearables
[“Source-Gadgets”]

Samsung’s Profit Surges to 2-Year High on Galaxy Phone Sales

Samsung's Profit Surges to 2-Year High on Galaxy Phone Sales

Samsung Electronics Co. reported Thursday forecast-beating earnings results that were the best in two years as consumers snapped up its Galaxy smartphones, in a sign the company is getting its mojo back while rivals fail to deliver new smartphones.

The South Korean company forecast that its performance will continue to be “solid” during the rest of the year because demand for its lucrative components, such as high-end displays called Oled that are used as screens for premium smartphones, is expected to increase “substantially.” It expects to spend more, however, on mobile marketing of its upcoming large-screen smartphones, to be announced next week, which Samsung typically uses to distract consumers from new iPhone launches by Apple.

Samsung, the world’s largest smartphone maker, said its April-June net income rose 2 percent over a year earlier to KRW 5.85 trillion ($5.17 billion or roughly Rs. 34,650 crores), compared with KRW 5.75 trillion a year earlier.

That was slightly higher than forecasts, which have been revised upward in recent months to reflect stronger-than-expected sales of the new phones. Analysts had forecast net income of KRW 5.79 trillion, according to FactSet, a financial data provider.

Sales rose 5 percent to KRW 50.94 trillion ($45 billion), while operating profit surged 18 percent to KRW 8.14 trillion ($7.19 billion), in line with the company’s guidance earlier this month.

Samsung beat forecasts even as growth in the overall smartphone industry slowed. Its rival Apple, the world’s second-largest smartphone maker, is struggling to boost iPhone sales and reported a 27 percent quarterly drop in profits.

Samsung’s mobile business reported KRW 4.32 trillion ($3.82 billion) in operating income during the three-month period, its best quarterly performance since the second quarter of 2014.

Samsung estimates it shipped between 75.6 million and 78.3 million smartphones during the quarter, about twice as many as Apple’s 40.4 million iPhone sales.

The Galaxy S7 and S7 Edge smartphones drove the profit gain. The company launched the latest versions of its flagship smartphones in March, several weeks sooner than it did last year. Early launches helped Samsung report strong sales during the first quarter, and the latest results dispelled doubts it could sustain the momentum during the second quarter, since consumers continued to snap up new phones in the spring.

The company also reduced its mid- and low-end Galaxy models, helping to cut costs. During the earnings conference call, Samsung’s mobile business official said the company will launch the Galaxy C series exclusively for Chinese consumers.

The stellar performance of Samsung’s mobile division is a sign that its experiment with smartphone designs is paying off.

Samsung introduced the first of its flagship Edge smartphone series, which features curved displays that wrap around two corners of the device. But in 2015, it failed to capture demand because it ran into trouble mass producing those curved displays. The S7 Edge, with similar designs as its predecessor, saw robust demand from consumers and this time Samsung was able to deliver the products on time. The company said the Galaxy S7 Edge sales proportion increased.

The strength of the Galaxy S7 has boosted Samsung’s own component businesses. Sales of Oled, or organic light-emitting diode, display panels rose, helped by healthy sales of flagship smartphones and higher demand for flexible displays for the S7 Edge. Samsung dominates the global supply of Oled display panels for mobile phones.

Samsung is scheduled to announce the latest iteration of its Note series, the Galaxy Note 7, featuring a giant screen and a stylus, on August 2.

Tags: Android, Home Entertainment, Laptops, Mobiles, PC, Samsung, Samsung Mobiles, Tablets, Wearables
[“Source-Gadgets”]

Apple’s income Surges 31% on file iPhone income

Apple's Profit Surges 31% on Record iPhone Sales

Apple said on Tuesday that surging iPhone income helped propel a pointy upward push in quarterlyearnings, as the tech massive delivered a file forty eight million of the smartphones.

profits rose 31 percentage to $eleven.1 billion, at the same time as sales jumped 22 percent from a 12 months in the past to $fifty one.5 billion, Apple stated.

The California tech massive, which in September unveiled made over versions of the iPhone, said therange of gadgets offered jumped 22 percent from remaining year at the same time as revenues lifted 36percent.

Apple, the arena‘s biggest employer with the aid of market value, gave returned early after-hours profitsand dipped zero.2 percent to $114.30 on the effects.

chief government Tim cook dinner said Apple closed the books on its monetary yr, calling it “Apple’s mostsuccessful 12 months ever,” following robust iPhone income and a variety of recent or upgradedgadgets.

we’re heading into the holidays with our most powerful product lineup yet, including iPhone 6s and iPhone 6s Plus, Apple Watch with an multiplied lineup of instances and bands, the new iPad pro and the all-new Apple television, which starts offevolved shipping this week,” cook dinner stated in a assertion.

For the whole economic year ending in September, Apple booked a whopping $fifty three.4 billionearnings, up 35 percentage, whilst revenues rose 28 percent to $233.7 billion.

China, rising markets

some $12.5 billion in sales came from China — down 5 percent from the beyond region however doublethe level of a yr in the past.

cook stated the economic 12 months confirmed “our biggest absolute revenue growth ever” andchanged into helped bylarge inroads into emerging markets producing over $seventy nine billion ofrevenue and developing sixty three percent in spite of very robust headwinds from foreign exchange.”

The iPhone was the important thing driving force for Apple, bringing in greater than 60 percentage of itsrevenues for the beyond region. however iPad unit sales fell 20 percent inside the sector to nine.9million devices.

For its traditional computers, Apple sold an all-time file 5.7 million Macs inside the region.

No unique sales figures were given for the Apple Watch, but the effects showed sales from “othermerchandise changed into $3 billion over the same duration.

prepare dinner said of the Apple Watch that “we are within the very early innings of this promising new part of our commercial enterprise.”

Apple Watch “has already had a splendid impact on purchaser fitness and health and the memories we’rehearing about its effect are clearly inspirational,” he added.

Apple is making efforts to diversify with services which include its streaming track provider and Apple Pay, and its new streaming tv devices.

“The attain of our surroundings continues to grow, and iOS is changing increasingly components of ourcustomers lives in very meaningful approaches from their health to their homes to their vehicles,” cook dinner said at the profits call.

He delivered that Apple Pay is predicted to amplify to Hong Kong, Singapore and Spain in 2016.

cook visited China remaining week and stated Apple will maintain to make investments within the united states of america regardless of slowing increase in the global‘s 2dbiggest financial system.

The launch of the employer‘s hugedisplay iPhone 6 and iPhone 6 Plus last yr boosted its sales in China,although it faces sharp opposition from domestic competition such as Xiaomi and Huawei.

On his chinese language Sina Weibo – or microblog – account, cook dinner posted a picture of himselfclimbing the first rate Wall and said he becamesatisfied to be again” in China.

the us employer became due to open its twenty first mainland China store within the northeasternmetropolis of Dalian.

Apple targets to have 40 stores in China via next year.