Alphabet CEO Sundar Pichai spoke at the Asia-Pacific Economic Cooperation CEO Summit in San Francisco on November 16, 2023.
David Paul Morris Bloomberg Getty Images
Google’s parent company Alphabet reported earnings after the bell Tuesday.
Here’s how the company fared, compared to estimates from analysts polled by LSEG:
earnings: $1.89 per share vs $1.84 per share expected
result: $84.74 billion vs $84.19 billion expected
Here are the other numbers Wall Street is watching:
- YouTube ad revenue: $8.66 billion vs $8.93 billion, according to StreetAccount
- Google Cloud Revenue: $10.35 billion vs. $10.20 billion, according to StreetAccount
- Traffic acquisition cost (TAC): $13.39 billion vs $13.54 billion, according to StreetAccount
Alphabet’s revenue grew 14% year-over-year, driven by search as well as cloud, which exceeded $10 billion in each month and $1 billion in operating profit for the first time.
Alphabet shares rose about 1% on the report.
The company reported ad revenue of $64.62 billion – up from $58.14 billion last year, suggesting that Google’s ad business continues to grow after rising inflation and interest rates tighten marketing budgets in 2022 and 2023.
While YouTube’s ad revenue missed estimates, it still rose to $8.66 billion compared to $7.66 billion in the year-ago quarter. Although it is the largest video platform in the world, it is facing increasing competition from social video sites like TikTok.
The company’s “Other Bets” unit, which includes self-driving car company Waymo, brought in $365 million, up from $285 million a year ago. During the second quarter, Alphabet saw several expansion updates, including for its self-driving car unit Waymo, which opened its service to all San Francisco users. The move marks Waymo’s second citywide launch, following its 2020 debut in the Phoenix metropolitan area.
“Our strong performance this quarter highlights our continued strength in Search and momentum in Cloud,” Alphabet CEO Sundar Pichai said in an earnings release. “We are innovating at every layer of the AI ​​stack. Our long-standing infrastructure leadership and in-house research team position us as well as emerging technologies and as we pursue the many opportunities ahead.”
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