Alphabet performance FY 2018 versus FY 2017

Alphabet Performance FY 2018 v FY 2017: A comparison

 (Amounts in millions except number of employees and advertising & promotions expenses)

 FY 2018FY 2017
Revenues$ 136,819 m$110,855 m
Google segment Revenues$ 136,224 m $ 110,378 m
Net Income$30,736 m$12,662 m
Advertising Revenues$116,318 m $95,375 m
R&D expenses$ 21,419 m$ 16,625 m
Sales & Marketing expenses$ 16,333 m$ 12,893 m
General and administrative expenses$ 8,126 m $ 6,872  m
Employees98,771 80,110
US Revenues$ 63,269 m$ 52,449 m
Traffic Acquisition costs$ 26,726 m $ 21,672 m
Advertising and promotions expenses $6.4 Bn $5.1 Bn
  •  Revenues of Alphabet grew to $ 136,819 millions in 2018 from $110,855 millions in 2017; 23% year over year growth.
  • Alphabet Revenues from Google segment grew from $ 110,378 millions in 2017 to $ 136,224 millins in 2018; 23% year over year growth. Google segment revenues were 99.6% of the total revenues; same as last year.
  • Net Income of Alphabet grew from $12.7 Billion to $30.7 Billion.
  • Google's advertising revenues grew from $95,375 million in 2017 to $116,318 million in 2018.
  • Alphabet's US revenues represented 46% of the entire revenues of the brand in 2018. From $52.45 Billion in 2017, it grew to $63.3 Billion in 2018.
  • Alphabet's  R&D expenses increased $4,794 million from 2017 to 2018.  In 2018, its R&D expenses were 15.7% of the total revenues as compared to 15% the previous year. Alphabet spent $21,419 million on R&D in 2018 against $16,625  in 2017.
  • Sales and marketing expenses were 11.9% of the brand's total revenues in 2018 against 11.6% in 2017.  Alphabet's expenditure on sales and marketing rose to $16,333 million in 2018 from $12,893 in 2017.
  • Advertising and promotional expenses grew from $6.4 Billion to $5.1 Billion respectively.
  • General and administrative expenses of Alphabet increased $1,254 million from 2017 to 2018. In 2018, the G&A expenses were $ 8,126 million or 5.9% of the brand's revenues compared to $ 6,872  million or 6.2% in 2017.
  • United States revenues accounted for 46% of the company's entire revenues in 2018 compared to 47% in 2017. Alphabet's revenues from the united States market grew 21% from $52.45 Billion in 2017 to $63.3 Billion in 2018. 
  • Traffic acquisition costs grew from $21.7 Billion in 2017 to $26.73 Billion in 2018. Google's TAC were 23% of the advertising revenues in 2018 as compared to 22.7% in 2017.
  • In June 2017, the European Commission announced that some of Google's actions regarding its display and ranking of shopping search results and ads infringed European competition law. EC  imposed a €2.4 billion ($2.7 billion as of June 27, 2017) fine, which was accrued in the second quarter of 2017.
  • In July 2018, the European Commission announced  that certain provisions in Google's Android-related distribution agreements infringed European competition law. EC imposed a €4.3 billion ($5.1 billion as of June 30, 2018) fine, that was accrued in the second quarter of 2018.
  • Number of Alphabet employees increased from 80,110 in 2017 to 98,771 in 2018.
  • Operating expenses grew from $39.1 Billion in 2017 to $50.9 Billion in 2018.

Alphabet Annual Reports 2018 and 2017.