Alphabet reports £35.69 billion revenue and £12.68 earnings per share for the third quarter
The technology giant says total advertising revenue for the third quarter rose to £28.68 billion.
Google’s parent company estimated revenues from its “Other Bets” at £137.59 million.
The company Alphabet Inc. (NASDAQ: GOOGL) on Thursday released its third quarter financial results, which exceeded Wall Street estimates. The company attributed its fighting performance primarily to a significant increase in advertising revenues.
The company’s shares rose more than 6% in Thursday’s post-trading. At £1,281.59 per share, Alphabet Inc. has recovered over 50% from its year-to-date low of £814.72 per share in March, when the impact of COVID-19 was at its peak. At the beginning of 2020, the share price was £1,056 per share.
Alphabet’s financial results for the 3rd quarter compared to analysts’ estimates
According to Refinitiv, experts had forecast the company’s sales of 33.16 billion pounds sterling for the third quarter. Their estimate for earnings per share was capped at £8.66. In its Thursday report, Alphabet exceeded both estimates with higher revenues of £35.69 billion and £12.68 per share in the third quarter.
The US multinational conglomerate reported that it generated £2.66 billion in revenue from Google Cloud, while the expected £2.57 billion was lower. At £3.90 billion, revenue from YouTube ads also exceeded analysts’ estimate of £3.39 billion. Alphabet estimated its traffic acquisition cost (TAC) at £6.32 billion compared to £5.92 billion predicted by experts.
In the previous quarter (Q2), the Mountain View-based company reported a decline in revenue for the first time.
Alphabet reported that its total advertising revenue for the quarter ended September 30 was £28.68 billion, compared with £26.13 billion a year earlier. YouTube advertising growth, the US technology giant said, was particularly robust in the third quarter, with annual growth of 32%. Advertising revenues in the “Search and Other” category were 6% higher than last year.
Other prominent figures in Alphabet’s results report
Other prominent figures in Alphabet’s earnings report on Thursday include “Other” revenues of £4.24 billion compared to £3.13 billion in the same quarter last year. In “Other bets”, Google’s parent company estimated its last quarter revenue at £137.59 million, compared to £119.81 million last year.
The operating loss in “Other betting” was £850 million, compared with a smaller loss of £727.37 million in the third quarter last year. A report published at the end of September said that Google was getting closer to acquiring Fitbit.
At the time of writing this report, the American multinational conglomerate is estimated at £820 billion and has a price-to-revenue ratio of 35.21.