wordpress blog stats
Connect with us

Hi, what are you looking for?

Alphabet revenues up 26% in Q1 2018, company braces for GDPR impact

Alphabet Google

Alphabet, Google’s parent company, reported its Q1 2018 results, with the total revenue clocking in at $31.1 billion — up 26% from the same quarter last year. The company’s net income stood at $9.4 billion for this quarter. For comparison, Alphabet reported $23.3 billion in revenue and a $3 billion loss in net income last quarter due to the US tax bill.

Advertising is still king for Google

Alphabet’s revenue comes mainly from the Google ad business, which pulled in $26.6 billion in quarterly revenues, up 24%, compared to $21.4 billion in the same quarter last year. Advertising on Google’s own platforms (Search, Youtube etc.) brought in almost $22 billion (versus $17.4 billion in the same quarter last year). Advertising on other “network” sites brought in $4.6 billion in revenues, compared to just over $4 billion in the same quarter last year.

Despite concerns over privacy and certain unsavoury content on Youtube, there seems to have been no visible impact on the company’s core business. Paid ad clicks on Google’s own sites and apps (this number includes video ads watched on Youtube which aren’t exactly ‘clicks’) rose 59% YoY. This helped the company offset a 19% drop in cost per click, the result of mobile search and YouTube ad prices being lower on average than PC search ad prices.

Pichai tries to allay fears about GDPR

With targeted advertising being Alphabet and Google’s big cash cow there was some understandable apprehension among investors regarding Europe’s upcoming privacy legislation, the GDPR. Google CEO Sundar Pichai tried to quell investor fears on the possible impact by suggesting that Google is extremely well prepared and it will have little effect on the search advertising business. The General Data Protection Regulation (GDPR), which is meant to give consumers more control of their data, will go into effect on May 25. Any company that breaches the new rules will be fined up to 4% of its annual global revenue, for Google that number will be in the billions.

“GDPR is a fairly new public topic, but for us it’s not new,” Pichai said. “We started working on GDPR compliance over 18 months ago and have been very, very engaged on it.” He added, “First of all, it’s important to understand that most of our ad business is search, where we rely on very limited information — essentially what is in the keywords — to show a relevant ad or product.”

Advertisement. Scroll to continue reading.

As mentioned above Google’s own properties made up for $22 billion of ad revenue out of $26.6 billion total. What Pichai’s statement fails to address is the impact GDPR will have on the remaining $4.6 billion which mostly comes from Google Network Members. Google Network Members’ properties revenue largely comes from third-party sites that use its AdMob, AdSense or DoubleClick ad products to put ads on their websites. If a large number of European internet users opted out the ad targeting used in those tools, it could make them less useful for advertisers.

Alphabet’s big bet on Uber paid off handsomely

Alphabet reported the total value of its equity investments for the first time, revealing that it has gained about $3 billion on its investments in Uber and other companies. The company showed a one-time gain on equity securities of $3.03 billion from its portfolio, which CNBC speculates is mostly from its 2013 investment in Uber. At that time, the company put about $258 million into the ride-hailing company at a valuation of about $3.8 billion. Uber is now worth north of $60 billion.

What makes this more interesting is that Alphabet essentially made money off a company against whom it was recently embroiled in a high-profile lawsuit over driverless car tech.

Written By

Writes about consumer technology, social media, digital services and tech policy. Is a gadget freak, gamer and Star Wars nerd.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



While the market reality of popular crypto-assets like Bitcoin may undergo little change, the same can't be said for stablecoins.


Bringing transactions related to crypto-assets within the tax net could make matters less fuzzy.


Loopholes in FEMA and the decentralised nature of crypto-assets point to a need for effective regulations.


The need of the hour is for lawmakers to understand the systems that are amplifying harmful content.


For drone delivery to become a reality, a permissive regulatory regime is a prerequisite.

You May Also Like


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ