google parent Alphabet Big tech’s profitable march through earnings season continued, reporting third-quarter results that exceeded Wall Street’s expectations and profits nearly doubled as advertisers chased consumer shift online .
Alphabet’s revenue rose 41% to $65.12 billion in the past three months, its biggest revenue figure in 14 years. It made a profit of more than $21 billion, nearly three times the figure reported before the pandemic.
The company, which has seen its share price rise by 57% to date, making it the best-performing of the “fang” companies (Facebook, Apple, Amazon, Netflix and Google), generating $53.13 billion in advertising revenue. Seen growth – up from $37.1bn last year.
Revenue from its cloud division, which lags behind Amazon Web Services and Microsoft Azure, climbed 45% to $4.99 billion.
Operating losses for the sector nearly halved, from $1.2bn to $1.21bn to $644m.
In a call with investors, Alphabet and Google chief executive Sundar Pichai said search is “the heart of what we do” and emphasized the company’s achievements in learning artificial intelligence through its Pixel 6 phone and Android software.
“This quarter’s results show how our investments enable us to create more useful products for people and our partners,” he said.
Pichai also said that Google, a participant in next month’s Cop26 climate summit, said Google campuses and cloud services will be run on carbon-free energy by 2030, and that Google’s Maps function will help drivers find more fuel-efficient routes. will provide an eco-option for . destination and a wildfire system, “so that consumers can make quick and informed decisions during emergencies”.
Consumers will also be given data on their carbon footprint related to their use of the company cloud.
“It is clear that uncertainty is the new normal for the global economic outlook”, said chief business officer Philip Schindler, as uneven access to Covid vaccines affects the rates of economic recovery experienced in various countries and regions.
“The world is in flux,” he said. “When it comes to anticipating change, forecasting demand and investing in innovation businesses now needs as much support as it was a year and a half ago.”
In shopping, Schindler said, search activity has quadrupled in some areas. Often those searches precede a personal visit to the store. “Brick-and-mortar is not dead. Omni-channel instead [shopping] is in full force,” he said. Retail advertising revenue, the company said, was up 40%.
Analysts have expressed concern that privacy changes implemented by Apple are impacting spending, but Google’s search business is less affected because it owns the Android operating system.
Among its businesses, Alphabet chose to highlight its “steadfast commitment” to high-quality journalism and open access to information. In the quarter since July, Schindler said, the company had added 120 news providers to its 1,000-strong stable of information sources at Google. News Showcase. 90% of them are considered to be local, regional or community newspapers.
With plans to bring employees back to offices in January, Google said in September that it was Buying Another New York City office building for $2.1bn. company is also Plan Another Silicon Valley camp.