Data Centre

Cloud

Google prints money for Alphabet to stuff into Uncle Sam's pockets: $10bn blow from Donald Trump's tax shakeup

Still made a huge profit in 2017

By Iain Thomson in San Francisco

8 SHARE

Google-parent Alphabet suffered a $3bn loss of the final quarter of 2017 after handing over $9.9bn to Uncle Sam due changes in the US tax system.

Despite that hit, Alphabet is still very profitable [PDF] as you'd expect for a biz with near monopolies in ads, search and mobile phone operating systems: it would have banked $6.8bn in profit for the quarter without the taxation charge.

In a bumper 2017, the California giant recorded full-year revenues of $110.9bn, the first time it has broken the $100bn mark.

"This year is very special for us as it has been 20 years since Google was founded," said the Chocolate Factory's CEO Sundar Pichai. "Many things have changed but our mission of making the worlds information searchable will continue. Becoming a more AI-focused company will help that proceed."

Google's next phase of growth will be based on three pillars he said: cloud, YouTube, and hardware. On the cloud front, Google broke a milestone by having its first billion-dollar-quarter in terms of cloud services sales, and claimed it is now the fastest growing provider of public cloud services in the market – which isn't too difficult when you're not the market leader.

And by the way, that $1bn is a fifth of Amazon's $5bn-a-quarter AWS operation.

The Chocolate Factory also claimed the number of Google cloud deals that bring in more than $1m had more than tripled from 2016 to 2017, and that there are 4m paying G Suite customers.

On the YouTube front, business was good, Pichai said. More than 1.5 billion people a month use the site, which is now localized in 90 countries. This year Google signed deals with Universal and Sony to carry music videos, and inked a contract with concert-gougers Ticketmaster.

Google's hardware division has an excellent fourth quarter, with sales up strongly as you'd expect after a major product launch and in the run-up to Christmas. Pichai said he was "especially excited" about the Google Home range of devices, and said shipments of all hardware have doubled since this time last year.

Here's a summary of the fourth quarter results, the three months to the end of December 2017:

Overall results for the year were good, but again not as good as Wall Street was expecting. Here they are the figures for the full year:

Google also named its new chairman to replace the outgoing Eric Schmidt. The lucky winner is John Hennessy, who has been a board member since 2004 and is probably best known as the founder of MIPS Computer Systems. ®

Sign up to our NewsletterGet IT in your inbox daily

8 Comments

More from The Register

FYI: Drone maker DJI's 'Get it on Google Play' website button definitely does not get the app from Google Play...

Updated Quadcopter slinger rudely palms folk off to .apk download

Here you go, cloudy admins: Google emits NATty odds 'n' sods

Google Cloud Next Incremental titbits aimed at time-poor techies

Google's secret to a healthy phone? Remote-controlling your apps

Look Ma, no not much malware!

Thanksgiving brings together Apple's Siri and Google Assistant

A divided tech nation embraces, uncomfortably

Comparison sites cry foul over Google Shopping service

Original complainants say pay-to-play remedy has left them in the cold

EU Android latest: Critics diss Google's money-spinning 'cure'

You shouldn't profit from punishment

Surprising no one, Google to appeal against European Commission's €4.34bn Android fine

We'll just take our time here

Google Project Zero zeroes in on Google project: Security hole spotted in gVisor sandbox fence

Horn flags up flaw that can be exploited to breakout out of software containers

Google now minus Google Plus: Social mini-network faces axe in data leak bug drama

Project Zero would have been all over this – yet it remained under wraps

Iron Mike Pence blasts Google for its censor-happy Dragonfly Chinese search engine

Wait until the Veep finds out what Apple is doing for them