Yes, he pays taxes, apparently. There was a tax charge of US $ 586 million related to stock-based compensation

The owner of Google Inc (NASDAQ: GOOGL) fell short of Wall Street’s expectations with his fourth quarter earnings update last night.

Profit after tax reached US $ 6.59 billion, compared to US $ 6.04 billion the previous year. Based on generally accepted accounting principles (GAAP), net income reached $ 5.33 billion, compared to $ 4.92 billion the previous year.

Underlying earnings per share were US $ 9.36, down from US $ 8.67 the year before, but well below the US $ 9.64 expected by analysts.

Reported earnings per share (i.e. GAAP) was US $ 7.56 per share, compared to expectations of US $ 7.63.

Surprisingly for a company that drew a lot of criticism for its tax policies, the difference between underlying earnings and reported earnings was largely reduced to a tax burden of $ 586 million related to stock-based compensation. for employees.

Alphabet has said it will no longer remove stock-based compensation from its adjusted (or “headline”) earnings figure.

Revenue increased 22.2% (24% at constant exchange rates) to $ 26.06 billion, from $ 21.33 billion in the fourth quarter of the previous year.

Excluding commissions of $ 4.85 billion paid to members of the Google Network, revenue was $ 21.3 billion, ahead of some forecast of around $ 20.58 billion.

Google’s advertising revenue soared 17% to $ 22.40 billion from $ 19.08 billion the year before.

“Our growth in the fourth quarter was exceptional, with revenues up 22% year-on-year and 24% at constant currencies,” said Ruth Porat, Alphabet’s chief financial officer.

“This performance was driven by mobile search and YouTube. We are seeing great momentum in new areas of Google investment and continued solid progress in other betting, ”she said.