Google parent company Alphabet’s third-quarter earnings reported an impressive jump following the company’s first-ever revenue decline in Q2
Alphabet reported revenue of $38.01 billion (minus traffic acquisition costs) with earnings per share of $16.40, which represents a 14% year-on-year rise in revenue over the same period last year.
The company soundly beat Wall Street’s revenue expectations with the stock rose 4% right after the announcement of Q3 results.
“We had a strong quarter, consistent with the broader online environment,” said Sundar Pichai, Chief Executive Officer of Alphabet and Google. “It’s also a testament to the deep investments we’ve made in AI and other technologies, to deliver services that people turn to for help, in moments big and small.”
- Earnings per share: $16.40 vs $11.29 expected, according to Refinitiv estimates
- Revenue: $46.17 billion vs $42.90 billion expected, according to Refinitiv estimates
- Google Cloud: $3.44 billion vs. $3.32 billion estimated according to StreetAccount.
- YouTube ads: $5.04 billion vs. $4.39 billion estimated, according to StreetAccount.
- Traffic acquisition costs (TAC): $8.17 billion vs. $7.66 billion according to StreetAccount.
“Total revenues of $46.2 billion in the third quarter reflect broad based growth led by an increase in advertiser spend in Search and YouTube as well as continued strength in Google Cloud and Play,” Ruth Porat, Alphabet’s chief financial officer, said in a release.
On the analysts’ call, Pichai addressed the lawsuit currently being brought by the US Justice Department.
“On that note, regarding the DoJ’s lawsuit, we believe that our products are creating significant consumer benefits, and we’ll confidently make our case,” Pichai said. “Our company’s focus remains on continuing our work to build a Search product that people love and value.”