Alphabet Q3 Earnings Beat Market Expectations With Revenue of $22.5 Billion
Google parent Alphabet just had another really good quarter: Alphabet booked revenue of $22.5 billion during the company’s most recent quarter, which ended on September 30, compared to $18.7 billion during the same quarter a year ago. The company’s adjusted net income came in at $5 billion, compared to $4 billion a year ago.
This comes to $9.06 in earnings per share, compared to $7.35 per share a year ago. Analysts had expected earnings of $8.64 per share and revenue of $22.05 billion.
Alphabet CFO Ruth Porat attributed much of this revenue growth during Thursday’s earnings call to increasing video ad revenue, and Google CEO Sundar Pichai once again gave a special shout-out to YouTube. The video site had become a major platform for many big brand advertisers, he said. “YouTube continues to shine.”
One area to that investors and analysts paid especially close attention to this time around: Alphabet’s other bets, a business segment that includes both Nest and Google Fiber. Other bets brought in $197 million during the most recent quarter, compared to $141 million a year ago. But they also cost the company dearly, leading to segment losses of $865 million, compared to $865 million a year ago.
Earlier this week, Alphabet announced that it is effectively hitting the pause button on Fiber, which includes rethinking all announced future roll-outs. Fiber boss Craig Barratt announced at the time that he was leaving the company.
Porat said Thursday that the company was pausing its efforts in new cities to advance technology, including wireless access. However, she also told investors that Alphabet wasn’t going to shutter existing deployments in the 12 cities where Fiber has already launched. “We remain very committed to growth in those cities,” she said.
One of Google’s fastest revenue growth sectors has been its hardware and services business, which now accounts for $2.4 billion in revenue, compared to $1.7 billion during the same quarter a year ago. The company will likely see even more growth in this area in the coming quarters, thanks to a number of new hardware products, including its new Pixel phones and the Google Home speaker.
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