Alphabet Inc, Google’s parent company, reported $76.69 billion in revenue for Q3 2023, signifying an 11% year-on-year growth, as per the group’s latest earnings report.
Despite the revenue growth, the group recorded a 7% decline in its share price during Tuesday’s trading session.
However, at the close of Tuesday’s trading on Nasdaq, the group’s share price experienced a +1.61% appreciation.
The initial share price decline during trading is linked to the group’s cloud business performing below the expectations of analysts.
However, during the quarter under review, the group’s financial performance exceeded analysts’ estimates on almost every front.
The company’s revenue hit $76.69 billion, surpassing the projected $75.97 billion, with earnings per share at $1.55 compared to the estimated $1.45.
YouTube’s advertising revenue also climbed to $7.95 billion, beating the estimated $7.81 billion, while traffic acquisition costs slightly exceeded projections at $12.64 billion compared to $12.63 billion.
Key Highlights of Alphabet’s Q3 2023 vs Q3 2022 Performance
- Revenue: $76.69 billion, +11%
- Operating Income: $21.34 billion, +24.56%
- Operating Margin: 28%, +300 basis points
- Net income: $19.69 billion, +41.55%
- Diluted Earnings per Share: $1.55, +46.23%
- Google Advertising: $59.65 billion, +9.48%
More Insights
Q3 2023 is the first time in over a year that the group is recording double-digit year-on-year revenue growth. And the revenue growth is linked to Google Search’s performance as well as YouTube ads revenue.
- In speaking to investors, Sundar Pichai, lphabet’s CEO noted, “I’m pleased with our financial results and our product momentum this quarter, with AI-driven innovations across Search, YouTube, Cloud, our Pixel devices and more. We’re continuing to focus on making AI more helpful for everyone; there’s exciting progress and lots more to come.”
He also pointed out that YouTube Shorts, YouTube’s rival to TikTok, now garners 70 billion daily views, marking a significant surge from 50 billion views recorded at the start of 2023.