Google parent, Alphabet’s latest profit figures have missed projections, sending the tech giant’s shares falling in extended trading on Wall Street.
Profits rose 8% to $5.3bn (£4.2bn) for the last three months of 2016, fuelled by more advertising on mobile phones and YouTube. Analysts had expected more, but Alphabet’s shares fell almost 3%.
However, revenue for the quarter topped $26bn, up 22% from the same period the year before.Google’s ad revenue, which accounts for the bulk of its business, rose 17.4% to $22.40bn in the quarter.
Paid clicks, or clicks on Google ads, rose 36%, compared with a 33% increase in the third quarter. Paid clicks are those ads on which an advertiser pays only if a user clicks on them.
“Our growth in the fourth quarter was exceptional,” Alphabet chief financial officer Ruth Porat said in a statement. “We’re seeing great momentum in Google’s newer investment areas and ongoing strong progress in Other Bets.”
For earnings purposes, Alphabet separates operations such as self-driving cars and broadband into its Other Bets category, which nearly doubled revenue to $262m in the quarter but still posted a loss of nearly $1.1bn.
Under its new structure, Alphabet is seeking to expand beyond its role as a search engine and develop new revenues streams, BBC technology reports.
