Google parent Alphabet reported Q3 earnings that topped the Street’s expectations. The tech company posted $16.40 EPS and $38.01B in revenue, outperforming consensus estimates of $11.42 EPS and $35.35B in revenue. The company’s quarterly results come after the Justice Department’s long-awaited antitrust lawsuit alleging that Google engages in anticompetitive behavior to maintain its dominance of the search and search advertising industries. The Final Round panel will break down the details.
Video Transcript
– Google Alphabet there. The stock is popping after hours, up just around 9% right now. Jared Blikre has those numbers for us. Jared?
JARED BLIKRE: Yeah, we’re seeing the stock off of its highs a little bit, come down from that 10% jump. And by the way, it was up 3% today. So let’s dig into the numbers. Huge beats all around, third quarter EPS coming in at $16.40. The estimate was for quite a bit lower, $11.42, and that’s versus $10.12 year-over-year, so nice increase there.
Operating income, $11.2 billion, that’s up 22% year-over-year. Estimate was for quite a bit lower, $8.42 billion. And then just breaking down some of the different properties. Well, Google properties itself, that revenue was up $31.38 billion. So excuse me, up $9.5 billion from the — 9.5% from the year earlier. And the estimates were a little bit lower, $29.5 billion. Advertising revenue, $37.1 billion. That’s also up more than 9%, and the estimate was for $34.6 billion.
Then other revenue coming in $5.48 billion, that’s down 15% year-over-year. Estimate was for $5 billion. But the headline number is the revenue — excuse me, third quarter revenue ex-traffic acquisition cost, so that’s ex-TAC, coming at $38 billion. The estimate was for quite a bit lower, $35.35 billion. And then they did break out YouTube ads. Again, that revenue came in at $5.04 billion, estimate was $4.52 billion. Seana?
– And guys, on Google, you know, it’s interesting. Talk about overhangs and whether these things matter. We’d like to hear, and I’m sure we will on the call, more about this lawsuit, and this antitrust situation for Google. But boy, in this past quarter, you look at those numbers, didn’t matter much. And then specifically the YouTube ad sales really stick out to me. I think that’s something that when we talk about this platform, we often forget how much of that ad money is from YouTube, and it’s hard to see things changing.
Now interestingly, let’s get into, and we’re going to see, how much is Apple affected by all this too? Because Apple has been pulled into this story, the antitrust lawsuit against Google. And of course, new reports today that I feel we should mention, about the potential that Apple could just go its own way and try and make its own search engine, which maybe sounds like pretty far afield, but now that it’s being tied up with this Google antitrust lawsuit that really is about search, let’s see what is said on the call on that issue.
– [? Finley, ?] that, of course, will be something to watch when these calls will get underway. Google actually getting under way in just around 15 minutes, at the half-hour mark. A couple of the other calls will get underway at the top of the hour. But again, a strong quarter here overall, I think we can say, for these tech giants. Amazon reporting better than expected results, although the stock under a little bit of pressure, and some of that coming because of their operating income view trailing those estimates. That, of course, could be weighing on stocks here after hours.
Google, on the flip side, shares jumping here on the heels of its better-than-expected report. The revenue coming in at $46.17 billion. Estimate was for just around $42 billion. Earnings per share was a huge beat there for Google, at $16.40. And then, of course, going over to Facebook, they beat them both the top and bottom lines and also their user count. Daily active users coming at 1.82 billion, that’s growth of 12% year-over-year. Monthly active users coming in at 2.74 billion, that’s also up 12% on a year-over-year basis.
