YouTube Ad Rebound Helps Alphabet Beat Q3 Expectations – Deadline

YouTube advertising revenue increased 12% to $7.95 billion in the third quarter compared with the same period a year ago, helping corporate parent Alphabet beat Wall Street expectations. Total revenue rose 11% over the year-earlier quarter to hit $76.7 billion, while earnings per share surged to $1.55 from $1.06. Wall Street analysts had estimated revenue of $71.6 billion and EPS of $1.36. Despite the results coming in well above forecasts, Alphabet shares slipped more than 5%. They came into earnings up 59% this year to date. The main flaw in the earnings report that was seized upon by investors was the performance of Alphabet’s cloud business. It undershot Wall Street estimates, reaching $8.41 billion in revenue compared with forecasts for $8.6 billion. CEO Sundar Pichai touted “product momentum” in the earnings release, specifically artificial intelligence enhancements to Search, YouTube, Cloud, Pixel devices and other areas. “We’re continuing to focus on making AI more helpful for everyone; there’s exciting progress and lots more to come,” he said. Ruth Porat, President and Chief Investment Officer, called out “meaningful growth in Search and YouTube, and momentum in Cloud.” Overall advertising revenue came in at $59.7 billion, ahead of consensus estimates of $58.9 billion.
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