Alphabet beats earnings expectations with strong cloud revenue, shares rise 6% in after-hours trading

From CNBC: 2024-10-30 05:16:07

Google’s parent company, Alphabet, reported strong third-quarter earnings, beating expectations with revenue growth in its cloud unit. The company’s shares rose by 6% in after-hours trading. Key results include earnings per share of $2.12 vs. $1.85 expected, revenue of $88.27 billion vs. $86.30 billion expected, and YouTube ad revenue of $8.92 billion.

Alphabet’s revenue grew 15% year over year, with cloud revenue at $11.35 billion, a 35% increase from the previous year. CEO Sundar Pichai highlighted the success of the company’s AI products, driving a virtuous cycle. The strong quarter sets the stage for other tech giants reporting earnings this week.

The company’s net income rose to $26.3 billion, with Google’s search business generating $49.4 billion in revenue. Alphabet is focusing on using AI to streamline workflow and reduce costs. Advertising revenue increased to $65.85 billion, showing steady growth, while YouTube ad revenue exceeded expectations.

Google Workspace and Google Cloud Platform saw strong growth during the quarter. Other Bets, including Verily and Waymo, reported revenue of $388 million. Waymo recently closed a $5.6 billion funding round for expansion. Google Lens, a popular image recognition product, is used for over 20 billion visual searches monthly.

Alphabet experienced shake-ups internally and externally, including leadership changes. The company is evaluating how these changes will impact its operating results. With a focus on AI, cost-cutting, and revenue growth, Alphabet continues to innovate and expand its offerings.



Read more at CNBC:: Alphabet shares rise on earnings beats boosted by cloud revenue