Google jumped as much as 8.4 per cent to $813 per share in after hours trading, putting it on course to oust Apple as the world's most valuable company by market capitalisation when regular trading resumes tomorrow.
Google's new parent company Alphabet reported annual revenue rose 18 per cent to $21.33bn (£14.8bn) in the three months ended December 31.
But total operating losses on "Other Bets" – which includes "moonshots" such as self-driving cars, glucose-monitoring contact lenses and Internet balloons – widened to $3.57bn in the 12 months ended December 31, and $1.2bn in the fourth quarter.
This was the maiden set of earnings since Google's elaborate restructuring effort completed last year. They were divided into segments: its core business Google, with everything else lumped under "Other Bets".
Ruth Porat, chief financial officer of Alphabet, said: "Our very strong revenue growth in the fourth quarter reflects the vibrancy of our business, driven by mobile search as well as YouTube and programmatic advertising, all areas in which we've been investing for many years."
"We're excited about the opportunities we have across Google and Other Bets to use technology to improve the lives of billions of people," she added.
Google has come under increased scrutiny in the UK after agreeing to hand over £130m to HMRC, settling claims covering a 10-year period. Some critics have attacked the deal for being too lenient, while others say it shows the need to ditch outdated corporation tax altogether.
Business secretary Sajid Javid said over the weekend that the government’s tax deal with Google was not a “glorious moment”, but added that it will change behaviour.