Alphabet, the parent company of Google, has published information about its earnings for the third quarter of the current year.
It is worth noting that the mentioned figures exceeded the preliminary expectations of analysts. On the back of the positive result, the value of Alphabet shares showed a 6% increase in after-hours trading.
The company’s revenue for the third quarter of the current year was fixed at $88.27 billion. This indicator showed an increase of 15% compared to the result for the same period in 2023. It is worth noting that the preliminary LSEG estimate provided that Alphabet’s revenue for the quarter ended September 30, 2024, would be fixed at $86.3 billion.
Earnings per share in this case was $2.12. The preliminary LSEG estimate provided that this indicator would be fixed at $1.85.
YouTube advertising revenue for the third quarter of 2024 amounted to $8.92 billion. Over the same period last year, this indicator was fixed at $7.95 billion. StreetAccount’s preliminary estimate provided that the corresponding figure for the third quarter of 2024 would amount to $8.89 billion.
Google Cloud revenue for July-September of the current year was fixed at $11.35 billion. For the same period last year, the corresponding indicator amounted to $8.41 billion. StreetAccount’s preliminary estimate provided that this figure for the third quarter of 2024 would be fixed at $10.88 billion.
Traffic acquisition costs (TAC) totaled $13.71 billion for the quarter ended September 30, 2024. Over the same period last year, this figure was fixed at $12.64 billion. StreetAccount’s preliminary estimate called for a TAC of $13.53 billion for the third quarter of 2024.
Alphabet chief executive officer Sundar Pichai opened his call with investors saying that the company’s full stack of artificial intelligence products is now operating on a large scale and being applied by billions of Google users, creating a virtuous cycle.
It is worth noting that other technology giants will also report on their quarterly earnings this week. Meta and Microsoft will publish the relevant information on Wednesday, October 30th. Apple and Amazon will report quarterly earnings on Thursday, October 31st.
Google’s search business generated revenue of $49.4 billion for July-September of the current year. This indicator increased by 12.3% compared to the result for the same period in 2023. The search business continues to be the largest contributor to Alphabet’s revenue growth. The corresponding statement was made by the chief financial officer of the company Anat Ashkenazi.
The technology giant plans to continue its existing cutting costs efforts. As part of the corresponding efforts, the company uses artificial intelligence to streamline workflow and manage headcount and its physical footprint.
Machine intelligence also improves YouTube recommendations. The corresponding statement was made by the chief business officer of the company Philipp Schindler.
The Gemini language model developed by the technology giant has given YouTube the ability to recommend more relevant, fresher, and personalized content to the viewer.
As we have reported earlier, Alphabet to Invest in South Carolina.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
