Alphabet today released the company's fourth quarter and full year fiscal year 2023 financial results for the period ending December 31st. The report shows that Alphabet's total revenue for the fourth quarter was $86.310 billion, an increase of 13% compared to $76.048 billion in the same period of the previous year, and excluding the impact of foreign exchange rate changes, also an increase of 13% year-over-year; in accordance with U.S. GAAP, Alphabet's net income for the fourth quarter was $20.687 billion, compared to $13.624 billion in the same period of the previous year. billion, an increase of 52% year-on-year; diluted earnings per share of $1.64, compared with $1.05 per diluted share in the same period a year earlier.
Alphabet's total revenue for the fourth quarter was $86.310 billion, an increase of 13% compared to $76.048 billion in the same period of the previous year, excluding the impact of foreign exchange rate changes also up 13% year-on-year.Alphabet calculates its total revenue on a GAAP basis before traffic acquisition costs (TACs).Alphabet's fourth-quarter traffic acquisition expenses, also known as that is revenue shared with partners, was $13.986 billion, compared to $12.925 billion in the year-ago quarter;
Under U.S. GAAP, Alphabet's fourth-quarter operating profit was $23.697 billion, or 27 percent of revenue (i.e., operating margin). Under U.S. GAAP, Alphabet's operating profit for the same period a year earlier was $18.160 billion, or 24 percent of revenue;
On a U.S. GAAP basis, Alphabet's fourth-quarter net income was $20.687 billion, compared with $13.624 billion in the same period a year earlier, an increase of 52 percent;
On a GAAP basis, Alphabet reported fourth-quarter earnings per diluted share of $1.64, compared with $1.05 per diluted share in the year-ago period.
Alphabet's fourth-quarter revenue totaled $86.310 billion, up 13% from $76.048 billion in the year-ago quarter. If the exchange rate is the same as in the same period of the previous year (excluding the benefits related to the foreign exchange risk management program), Alphabet's fourth-quarter revenue growth rate of 13% year-on-year.
Google's search and other businesses, a division of Alphabet's Google, reported fourth-quarter revenue of $48.020 billion, up from $42.604 billion in the same period a year earlier, while YouTube's advertising business reported revenue of $9.200 billion, up from $7.963 billion in the same period a year earlier.
Fourth-quarter web revenue at Alphabet's Google unit, which is the revenue generated by Google partner sites through the AdSense program, was $8.297 billion, down from $8.475 billion in the same period a year earlier.
Fourth-quarter advertising revenue (i.e., the sum of revenue from each of the above businesses) for Alphabet's Google unit was $65.517 billion, compared with $59.042 billion in the same period a year earlier.
Fourth-quarter other revenue at Alphabet's Google unit came in at $10.794 billion, up from $8.796 billion a year earlier.
Alphabet's Google unit's total fourth-quarter services revenue (i.e., the sum of revenue from each of the above businesses) was $76.311 billion, compared with $67.838 billion in the same period a year earlier.
Alphabet's Google unit reported fourth-quarter Google Cloud revenue of $9.192 billion, up from $7.315 billion a year earlier.
Alphabet's "Other Bets" business generated $657 million in revenue in the fourth quarter, compared to $226 million in the same period a year earlier.
Alphabet's fourth-quarter hedging gains were $150 million, down from hedging gains of $669 million in the same period a year earlier.
For the entire fiscal year 2023, Alphabet reported revenue of $307.394 billion, beating analysts' previous expectations. On average, 40 analysts had previously expected Alphabet to report fourth-quarter revenue of $282.39 billion, according to data provided by Yahoo Finance.
For the entire fiscal year 2023, Alphabet reported diluted earnings per share of $5.80, also exceeding analysts' previous expectations. According to data provided by Yahoo Finance, 41 analysts previously expected Alphabet's fourth-quarter revenue to average $5.29.
Although Alphabet's fourth-quarter revenue and adjusted earnings per share exceeded expectations, its advertising revenue was disappointing. Earnings show that YouTube advertising business revenue in the fourth quarter was $9.2 billion, while analysts had previously expected the business to generate $9.21 billion in fourth-quarter revenue, according to a survey by analyst firm StreetAccount. As a result, Alphabet shares plummeted more than 4 percent in after-hours trading on the New York market.
In addition, the fourth quarter Google cloud business revenue of $ 9.19 billion, exceeding analysts' expectations of $ 8.94 billion; traffic acquisition costs of $ 13.9 billion, while analysts previously expected $ 14.1 billion.