Google’s parent company posted a strong first quarter for 2017. The stock is up in after hours by 3.4%
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2.30 (0.26%)
2.30 (0.26%)After-hours: 921.9030.46 (3.42%)
30.46 (3.42%)Q1 2017 financial highlights
The following summarizes our consolidated financial results for the quarters ended March 31, 2016 and 2017 (in millions, except for per share information, effective tax rate, and headcount; unaudited):
| Three Months Ended March 31, 2016 |
Three Months Ended March 31, 2017 |
|||
|---|---|---|---|---|
| Revenues | $20,257 | $24,750 | ||
| Increase in revenues year over year | 17 | % | 22 | % |
| Increase in constant currency revenues year over year | 23 | % | 24 | % |
| Operating income | $5,342 | $6,568 | ||
| Operating margin | 26 | % | 27 | % |
| Net income | $4,207 | $5,426 | ||
| Diluted EPS | $6.02 | $7.73 | ||
| Diluted shares (in thousands) | 699,311 | 702,036 | ||
| Effective tax rate (ETR) | 18 | % | 20 | % |
| Headcount | 64,115 | 73,992 | ||
Q1 2017 supplemental information
Segment revenues and operating results (in millions; unaudited):
| Three Months Ended March 31, 2016 |
Three Months Ended March 31, 2017 |
||
|---|---|---|---|
| Google properties revenues | $14,328 | $17,403 | |
| Google Network Members’ properties revenues | 3,692 | 4,008 | |
| Google advertising revenues | 18,020 | 21,411 | |
| Google other revenues | 2,072 | 3,095 | |
| Google segment revenues | $20,092 | $24,506 | |
| Other Bets revenues | $165 | $244 | |
| Google operating income | $6,245 | $7,598 | |
| Other Bets operating loss | $(774) | $(855) |
Traffic acquisition costs (TAC) to Google Network Members and distribution partners (in millions; unaudited):
| Three Months Ended March 31, 2016 |
Three Months Ended March 31, 2017 |
|||
|---|---|---|---|---|
| TAC to Google Network Members | $2,571 | $2,824 | ||
| TAC to Google Network Members as % of Google Network Members’ properties revenues | 70 | % | 70 | % |
| TAC to distribution partners | $1,217 | $1,805 | ||
| TAC to distribution partners as % of Google properties revenues | 8 | % | 10 | % |
| Total TAC | $3,788 | $4,629 | ||
| Total TAC as % of Google advertising revenues | 21 | % | 22 | % |
Paid clicks and cost-per-click information (unaudited):
| Change from Q1 2016 to Q1 2017 (YoY) | Change from Q4 2016 to Q1 2017 (QoQ) | |
|---|---|---|
| Aggregate paid clicks | 44 % | 2 % |
| Paid clicks on Google properties | 53 % | 1 % |
| Paid clicks on Google Network Members’ properties | 10 % | 6 % |
| Aggregate cost-per-click | (19) % | (4) % |
| Cost-per-click on Google properties | (21) % | (3) % |
| Cost-per-click on Google Network Members’ properties | (17) % | (9) % |
