Oct. 26, 2021 By: Jason Aycock
- Alphabet is seeing choppy mixed trading after hours (GOOG, GOOGL) after it beat expectations on top and bottom lines with its Q3 earnings, where it has yet to characterize any hit from Apple’s privacy changes on the ad business – which responded with core strength both on search and YouTube.
- Revenues rose a healthy 41% to $65.12 billion, nearly $2 billion better than expected. In constant currency, the figure rose 39%. Total traffic acquisition costs rose to $11.5 billion from $8.17 billion.
- Operating income jumped to $21 billion from a year-ago $11.2 billion for the third quarter, and operating margin rose to 32% from 24%.
- That led to net income that soared 68% to $18.94 billion.
- “Five years ago, I laid out our vision to become an AI-first company,” CEO Sundar Pichai says. “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.”
- Revenue by segment: Google search and other, $37.93 billion (up 44%); YouTube ads, $7.2 billion (up 43%); Google Network, $8 billion (up 39.8%); Google other, $6.75 billion (up 23.2%); Google Cloud, $4.99 billion (up 44.9%); Other Bets, $182 million (up 2.2%).
- Operating income by segment: Google Services, $23.97 billion (up 65.9%); Google Cloud, -$644 million (vs. year-ago -$1.2 billion); Other Bets, -$1.29 billion (vs. year-ago -$1.1 billion).
- Conference call to come at 4:30 p.m. ET.