Alphabet CEO Sundar Pichai gestures during a session at the World Economic Forum annual meeting in Davos.
Fabrice Coffrini | AFP | Getty Images
Google parent company Alphabet‘s stock rose more than 5% in after-hours trading as it crushed expectations for both earnings and revenue in its third-quarter earnings results.
Here are the results.
- 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.
The company beat estimates across the board, following its first-ever revenue decline in Q2. The results showed a strong rebound in its core advertising revenue, which was hit hard by customer spending pullbacks amid the Covid-19 pandemic. It follows similarly strong earnings reports by ad-driven online companies Pinterest and Snap earlier this month.
For the quarter ending September 30, the company brought in advertising revenue of $37.10 billion, compared to $33.80 billion a year ago.
Google’s “Other Revenue,” which includes hardware like its Pixel phones and cloud products, came in at $5.48 billion, compared to $4.05 billion a year ago.
Alphabet said its revenue from “Other Bets,” which includes its subsidiaries outside of Google like the self-driving car company Waymo and Life Sciences business Verily brought in $178 million compared to $155 million a year ago.
This is breaking news. Please check back for updates.
Correction: YouTube advertising revenues were $5.04 billion for the quarter, and TAC was $8.17 billion.
