Bulletin: Alphabet Inc. Third Quarter Revenue Growth And Increased Cost Of Traffic Acquisition Do Not Affect Ratings

SAN FRANCISCO (S&P Global Ratings) Oct. 30, 2017--S&P Global Ratings today said that Mountain View, Calif.-based global technology provider Alphabet Inc.'s strong third-quarter results do not affect our ratings on the company. Its revenue is up 24% year over year driven by mobile search and S&P Global Ratings-adjusted EBITDA margin in the mid-41% area, which was relatively consistent with the same quarter one year ago. Traffic acquisition cost (TAC) was up to 22.9% of total advertising revenue, up 40 basis points (bps) from the prior quarter and 176 bps year over year, due to the mix shifting to mobile search and programmatic ad buying. Alphabet generated total revenues of $27.8 billion for the quarter. Ad revenue from Google's sites (71%

...SAN FRANCISCO (S&P Global Ratings) Oct. 30, 2017--S&P Global Ratings today said that Mountain View, Calif.-based global technology provider Alphabet Inc.'s strong third-quarter results do not affect our ratings on the company. Its revenue is up 24% year over year driven by mobile search and S&P Global Ratings-adjusted EBITDA margin in the mid-41% area, which was relatively consistent with the same quarter one year ago. Traffic acquisition cost (TAC) was up to 22.9% of total advertising revenue, up 40 basis points (bps) from the prior quarter and 176 bps year over year, due to the mix shifting to mobile search and programmatic ad buying. Alphabet generated total revenues of $27.8 billion for the quarter. Ad revenue from Google's sites (71% of total revenues) grew 23% on growth in mobile search. Programmatic ad buying led to growth of 16% in revenue from Google network members' sites (16% of total revenues). Google's other revenues (12% of total revenues) grew 40% because of growth in Google...

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