Alphabet reveals record high third-quarter earnings
Google’s parent company Alphabet recorded $65.1bn in revenue, a 41% increase from last year
Google’s parent company Alphabet recorded higher than expected earnings in its third-quarter results, which were announced on Tuesday.
The tech giant recorded $65.1bn revenue, a 41% increase from $46bn last year. It also recorded $18.9bn in net profit, up from $11.2bn for the same period last year.
Google’s share price also rose to $27.99 per share, compared to $16.40 per share a year ago.
Ruth Porat, CFO of Alphabet and Google, credited the "consistent investments" made by the tech giant to support its long-term business for the strong financial performance.
“We continued to deliver across our business by providing helpful and valuable experiences for both consumers and our partners,” added Porat.
Ad revenue up despite privacy changes
Google’s advertising revenue recorded impressive growth as it rose by 43% to $53.1bn, up from $37.1bn the same time last year.
YouTube advertising also rose to $7.2bn, up from $5bn from last year.
Alphabet’s quarterly revenue figures suggest that Google is coping well with Apple’s recent iOS 14 updates, which limit tracking and the targeting of ads. Facebook cited these privacy changes as a reason for the slow-down in its advertising business, and said it expects the updates to affect its revenue in the fourth quarter ahead of the holiday season.
Commenting on the quarterly results, Sundar Pichai, CEO of Alphabet and Google, said: “Five years ago, I laid out our vision to become an AI-first company. This quarter’s results show how our investments there are enabling us to build more helpful products for people and our partners.
"Ongoing improvements to Search, and the new Pixel 6, are great examples. And as the digital transformation and shift to hybrid work continue, our Cloud services are helping organisations collaborate and stay secure.”