Google Earnings, Revenue Beat Expectations
The search advertising giant brought in $27.8 billion in revenue during the third quarter.
Google's parent, Alphabet, brought in $27.8 billion in revenue during the third quarter this year, the company reported Thursday.
The advertising behemoth also reported quarterly net income of $9.57 per share. Analysts had been expecting revenue of $21.94 billion and earnings of $8.31 per share. Alphabet shares were trading up nearly 4 percent during after-hours trading on the quarterly beat.
The majority of revenue at Alphabet continues to come from Google properties. Its "other bets" segment, which includes Nest, self-driving cars and other R&D divisions, brought in $302 million in revenue during the quarter, up from $197 million during the same period in 2016. However, that segment lost $812 million during the quarter.
YouTube, which does not get broken out of Google's revenues, got a shout-out on Alphabet's call with investors. CFO Ruth Porat said the streamer's content acquisition costs — part of its push to compete in the streaming landscape with such originals as Cobra Kai and Impulse — are contributing to Google's increasing expenses. In the third quarter, Google reported that costs and expenses had grown to $60 billion, up from $47 billion during the same period in 2016.
Google CEO Sundar Pichai noted that people are watching 100 million hours of YouTube from their living rooms each day, up 70 percent in the last year. He also spoke about the growth of YouTube TV, the skinny bundle offering that has been advertised heavily during the World Series. The exec did not disclose subscriber numbers but said that it is now available to two-thirds of all households in the U.S.
Google shares closed the day flat at $972.56. They were trading up more than $31 after-hours to over $1,000 per share.