Alphabet, Google's parent company, on Tuesday reported a net loss on revenue of $32.3 billion, up 24% year-over-year, for the quarter ending December 31, 2017. Revenue came in a bit higher, but earnings per share missed analyst expectations at $9.70 vs. the 9.98 expected by Thomson Reuters consensus estimates.
The company also hit a milestone, posting annual revenue of $110.8 billion -- up from about $90.2 billion in 2016.
The increase in revenue was driven by Google's advertising business. The company posted $27.27 billion in revenue in the fourth quarter.
In aggregate, paid clicks rose to 43% compared with the year-ago quarter. Paid clicks on Google Network member sites rose 13%. The aggregate cost per click (CPC) fell 14%. The cost per click on Google properties fell 16%. The cost per click on Google network member sites fell 4%.
The other revenue generator, "other bets," took an operating loss for the quarter.
"Our business is driving great growth, with 2017 revenues of $110.9 billion, up 23% year on year, and fourth quarter revenues of $32.3 billion, up 24% year on year," wrote Ruth Porat, CFO of Alphabet, in a statement. "Our full year operating income growth continues to underscore our core strength, and on top of this, we continue to make substantial investments for the long-term in exciting new businesses."
For the year, the company spent 16.6 billion in research and development (unaudited) and nearly $12.9 billion in sales and marketing its products and services.