Google and Amazon both posted their Q4 results in the last 24 hours.
Google’s annual revenue is up 23% YoY to $110.9 billion and its Q4 revenue is up 24% YoY to $32.3 billion. Advertising revenues made up the lion’s share of Google’s total revenue, accounting for $27.2 billion in revenue during Q4.
Google also reported a $10 billion tax hit under the Tax Cut and Jobs Act. The Tax Cut and Jobs Act leverages a one-time 15.5% tax on foreign earnings held overseas with the overarching aim to bring the money back into the US.
According to a report from Axios, Google has $52 billion stored overseas and Apple stores more overseas than any other US corporation ($252 billion).
Google also paid a $2.7 billion anti-trust fine to the EU in Q4. Total loses for Q4 were $3 billion.
Average cost-per-click on Google’s properties was down 7% but up 1% on “Google’s Network Members’ Properties” (The Google Display Network). This decrease can largely be attributed to the lower cost-per-click attributable to mobile relative to desktop advertisements.
The results come in the aftermath of endless controversy about ad placement beside content advertisers have deemed objectionable, particularly in relation to Google’s owned services.
Some of the examples include a popular YouTube publisher posting video content of a dead body discovered in Japan’s “suicide forest” and the Tide Pod craze (where publishers deliberate eating laundry detergent).
According to a statement made by YouTube CEO Susan Wojcicki, Google is going to increase the number of people “working to address content that might violate our policies” to 10,000 in 2018.
Amazon meanwhile announced net income for Q4 of $1.9 billion on revenue of $60.5 billion.
While the new tax on foreign earnings seems to have made a big impact on Google and Facebook, it has had little to no impact on Amazon. Brian Olsavsky, Amazon’s Chief Financial Officer, said this is largely a result of Amazon being “in heavy investment mode internationally”.
Of particular note is the growth in Amazon Web Services, where revenues grew 45% to reach $5.1 billion. The latest announcement signals the 11th straight quarter of positive income for Amazon.