For her part, Ruth Porat, CFO of Alphabet, stated that “we had an 11% year-over-year increase, driven by significant growth in Search and YouTube, in addition to the Google Cloud boost. “We continue to focus on judicious capital allocation to deliver sustainable results.”
Revenue, excluding traffic acquisition costs for the third quarter, was $64.1 billion versus expectations of $63 billion. That’s more than the $57.3 billion the company raised during the same quarter last year. Adjusted earnings per share were $1.55. Analysts were expecting $1.44 per share.
It should be noted that despite the good numbers, the Cloud business did not meet expectations, as it had revenues of $8.41 billion, while Wall Street expected $8.6 billion.
Despite the cloud revenue loss, the company’s advertising business reported $59.7 billion in revenue, beating consensus estimates of $58.9 billion.
Google has been pouring money into its generative AI efforts after being caught off guard by Microsoft, which began incorporating OpenAI technology into its products. Since then, Google has introduced a number of generative AI products for its consumer and enterprise businesses.
Although it is not specified how much Pixel’s specific profits were, the company’s ‘other businesses’ also had a growth of $297 million.