It’s that time of year again, with Alphabet, Google’s parent company, today releasing their Q3 2018 results with earnings of $33.74 billion dollars, a 21% year over year increase on Q3 2017.
As usual, the report was headlined with a quote from Alphabet and Google Chief Financial Officer, Ruth Porat, who said
Our business continues to have strong momentum globally, led by mobile search and our many products that help billions of people every day. Alphabet revenues were $33.7 billion, up 21% versus the third quarter of 2017, and we remain focused on delivering on the opportunities we see.
As expected for a company who monetises search with ad-placement, a good chunk of Google’s income came from ad revenue with the company reporting earnings of $28.95 billion in that area, a 20% increase year-over-year.
Alphabet is quite a diverse company, with their fingers in many pies including their self-driving car initiative Waymo, health services under Verily, Google Fiber and more which are lumped under ‘Other Bets’. These other bets have been a continual source of drain for Google in their earnings report and while their revenue increased from $116 million at the same time last year to $146 million this quarter, it still lost $727 million.
While Google has just launched most of their 2018 hardware into stores around the world, those new devices won’t show an effect until next quarter under their ‘Other Revenue’ which was up from $3.5 billion in Q3 2017 to $4.6 billion this year.
Investors are apparently not pleased with the earnings report, with Alphabet apparently missing expectations while still delivering a positive bottom line. Alphabet’s GOOG share price dropped by 3.7% in after hours trading, though never mind as they’re still worth over $1,000USD per share.
The end result is that Alphabet and Google made a lot of money this year, and with new projects in the pipeline which Pichai touched on in the earnings call including Project Stream and future new markets like China with their controversial modified search, there’s more profits coming. You can check out the earnings call from today on YouTube: