In its Q3 earnings, Alphabet missed revenue expectations but beat on the bottom line.
Google -parent company Alphabet just reported its third quarter earnings. The company beat earnings expectations but missed revenue expectations. Google stock sunk as much as 5 percent.
Here are the most important numbers:
Alphabet’s overall revenues were up 21 percent year-over-year. As usual, Google’s advertising business accounted for most of its revenue, hitting $28.95 billion in the third quarter, up 18.44 percent year-over-year.
Meanwhile, its “other revenues” category, which includes its cloud business and hardware sales and is especially important to investors looking for Google’s future beyond ads, hit $4.64 billion, or a 25.5 percent increase year-over-year. That’s a less dramatic acceleration than last quarter’s, where the category increased its revenues 36.5 percent year-over-year.
Alphabet also breaks out the revenues and losses for its longer-term “Other Bets,” like healthcare company Verily, internet service provider Fiber, and self-driving car company Waymo. Other Bets posted Q2 revenue of $146 million, up from $117 million the same quarter last year. Operating losses also grew, with the company posting losses of $727 million up from losses of $650 million the year before.
Google’s traffic acquisition costs, which includes the money it pays to phone manufactures, like Apple, to use its services, like search, was $6.58 billion.
This story is developing.
