Alphabet Inc. (NASDAQ:GOOGL) announce strong third quarter as revenues and profits soar. The parent company of Google announced that revenue climbed 24% year on year, from $22.5 billion to $27.8 billion, as well as net income rising 33% to $6.7 billion.
The firm’s “Other Bets” – Alphabet’s other business ventures – have also experienced an upswing in performance, however Google contributes by far and away the most to both earnings and profit. Revenue from “Other Bets” has increased by 53% to $302 million as they also reduced losses by 6% to $812 million.
Ruth Porat, CEO of Alphabet, said that the company “had a terrific quarter, with revenues up 24% year on year, reflecting strength across Google and Other Bets,” and that their “momentum is a result of investments over many years in fantastic people, products and partnerships”.
Alphabet also reported a significant increase in their earnings per share by 32% on the previous year to $9.57.
The performance of the technology company beat analyst expectations polled by Bloomberg. Average estimates predicted revenue of $22 billion and an EPS of $8.34, which was comfortably beaten.
As is typical with the firm, the lion’s share of revenue comes from advertising, which brought in $24 billion, 87% of total revenue.
The strong performance is welcome news for Alphabet as Google is facing regulatory problems on both sides of the Atlantic. In the UK Ofcom chairman Dame Patricia Hodgson has said that Google may be reclassified as a publisher as “fake news” continually becomes an issue gaining traction. In the US, there are also increasing concerns over the Russian government’s use of Google’s advertising platforms to perpetuaute propaganda.
Alphabet’s share price has risen 3% in pre-market trading on the NASDAQ to $1,020.