Alphabet Posts Very Good Results for the Third Quarter of 2020

Alphabet Posts Very Good Results for the Third Quarter of 2020
Alphabet

Alphabet reported a strong third quarter as its top line grew following an increase in advertiser spend. CEO Sundar Pichai explained it was consistent with the broader online environment.

The company reported revenue of $46.2 billion, a 14 percent increase year-on-year, while net income grew to $11.2 billion, from $7 billion. Pichai said the growth was a testament to the deep investments it had made in AI and other technologies to deliver services that people turn to for help, in moments big and small. CFO Ruth Porat added the revenue increase reflected broad growth led by advertiser spend in Search and YouTube, as well as continued strength in Google Cloud and Play.

In total, its advertising division generated revenue of $37.1 billion, up from $34 billion in Q3 2019. Revenue from Google Search totalled $26.3 billion, with YouTube ads reaping $5 billion. Google Cloud contributed $3.4 billion and its other segment, which includes hardware, cloud services, and Play Store, generated $5.5 billion. Other bets division, including Waymo, had revenue of $178 million. On an earnings call, Pichai and Porat focused on YouTube’s success. In total, the platform has more than 30 million music and premium paid subscribers, while YouTube TV has more than 3 million.