It’s a big day for Google, and not just because the Pixel 5 is now available and the Pixel 4a 5G is up for pre-order. In fact, today’s success probably has nothing to do with Pixels at all. Google parent company Alphabet just reported its third-quarter financial results, and numbers are looking good. So good, stocks are up 11% today.
Year-over-year, Google reports a 14% increase in revenue ($46 billion, up from $40 billion) with a total of around $11.24 billion in net income for the quarter. Most of this increase is due to growth in advertising, according to Ruth Porat, Google/Alphabet’s CFO. “Total revenues of $46.2 billion in the third quarter reflect broad based growth led by an increase in advertiser spend in Search and YouTube as well as continued strength in Google Cloud and Play.” This growth is clearly good news for Google, but it also likely means previous predictions regarding doom and gloom for ad spending probably won’t pan out — as a blogger, thank god.
This is in stark contrast to last quarter’s report, which had Google flat year-over-year.
As per yooj, most of the money comes courtesy of Search itself (still via ads), but YouTube is also seeing some substantial growth in ad revenue, up 32% year-over-year. Google Cloud’s revenue is also up an equally impressive 44% for the same period, and the company has promised further aggressive investments during its earnings call to help that growth continue ahead of breaking that out into its own segment. While Google doesn’t break out its first-party hardware efforts into a segment, we have to assume it slots somewhere into the “Google other” category, which is still up a sizeable 35%, but likely not due to Pixels alone.
Google’s stock was already up a little over 3% as part of today’s trading ahead of the financial report itself, but it rose at peak a further ~8% in after-hours trading — down slightly to 7.6% at the time of writing. It would appear the market isn’t especially concerned about Google’s antitrust woes here in the US or the potential ramifications it could have on Google’s properties.