Google parent Alphabet topped Wall Street revenue targets on Tuesday in third quarter financial results that showed strong growth in the company’s core businesses.
The company said consolidated revenue grew 15% to $88 billion, while net income grew 34% to $26 billion, compared to the same period a year ago. Google search remained the company’s prime revenue engine, bringing in $49.3 billion in revenue over the quarter, an increase of 12% from a year ago and YouTube and Google Cloud also grew. Revenue from YouTube reached $8.9 billion, an increase of 12%, and revenue from Cloud hit $11.3 billion, an increase of 34%. Meanwhile TAC, or traffic acquisition costs, were $13.7 billion, up almost 9% and earnings per share rose to $2.12.
All of the categories performed better than financial analysts projected, with revenues and EPS higher and TAC slightly lower, pleasing Wall Street. Alphabet shares rose almost 4.8% to $179.40 in after hours trading.
CEO Sundar Pichai said in a statement that company’s “long-term focus and investment in AI” is starting to pay off with both enterprise customers and regular consumers.
“In Search, our new AI features are expanding what people can search for and how they search for it,” Pichai said. “In Cloud, our AI solutions are helping drive deeper product adoption with existing customers, attract new customers and win larger deals. And YouTube’s total ads and subscription revenues surpassed $50 billion over the past four quarters for the first time.”
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