Alphabet Beats Estimates On Advertising Rebound

Alphabet reported its third quarter results, beating consensus estimates, amid an increase in advertiser spending.

Alphabet reported quarterly revenue of $46.2 billion, up from $40.5 billion the year-ago quarter. The company posted an $11.25 billion profit, or $10.12 a share. Executives attributed the results to the company’s investment in emerging technologies, such as AI, as well as a rebound in advertising spending. YouTube, in particular, brought in $5 billion in revenue.

“We had a strong quarter, consistent with the broader online environment,” said Sundar Pichai, Chief Executive Officer of Alphabet and Google. “It’s also a testament to the deep investments we’ve made in AI and other technologies, to deliver services that people turn to for help, in moments big and small.”

“Total revenues of $46.2 billion in the third quarter reflect broad based growth led by an increase in advertiser spend in Search and YouTube as well as continued strength in Google Cloud and Play,” said Ruth Porat, Chief Financial Officer of Alphabet and Google. “We remain focused on making the right investments to support long term sustainable value.”

Alphabet is just the latest company to beat analysts’ estimates. Pinterest reported its results Wednesday, and also reported an outstanding quarter on advertising rebound. Apple likewise reported a record quarter on strong Mac, iPad and Services.