Alphabet (Google’s parent company) have released their earnings report too and in line with the season, it also beats Wall Street estimates.
So here’s a quick breakdown;
Total revenue was $22.45b at $9.06 a share versus $22.05b at $8.64 a share expected. By this time last year, that figure stood at $18.7b at $7.35 a share. As you might expect Google was the biggest driver of revenue in the Alphabet group. Other establishments like Nest, Google Fiber and Google Ventures raked in a revenue of $197m versus $141m last year. In the second quarter of this year, Alphabet reported $185m from these other non-Google ventures compared to $74m in the second quarter of 2015. In the second quarter, the loss from these other companies widened to $859m from$660m and now in the third quarter, that figure is now $865m versus $980m last year. As part of the earnings report release, they have also said they would repurchase up to $7.02 billion in stock.
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Google’s ad revenue was up 18.1 percent to $19.82b in the third quarter and like I said earlier, this figure accounts for a bulk of earnings Alphabet reported. Actually, revenue from Google now accounts for 89.1 percent of total revenue of the entire group. Breaking it down further, it looks like Google’s focus on mobile is also paying off. Mobile advertising played a huge role in the figures and about two weeks ago, we reported that Google was taking it focus on mobile a step further by building a separate search index for mobile users which means that Search users on mobile may have an updated result than desktop users in future.
Paid clicks rose 33 percent too compared to 29 percent in the second quarter while Cost-per-click which what an advertiser pays to Google for each click fell 11 percent versus 7 percent in the second quarter.
Analysts even believe Google’s drive into video adverts using YouTube could see the company even have a higher revenue in the fourth quarter. Google dominated the digital ads space with Facebook second. In the last quarter, Google’s market share of the digital ads space was 31 percent while Facebooks stood at 12 percent. Now we can’t accurately tell until Facebook release their earnings report.
