Alphabet Reports Strong Sales As Mobile Search and Video Ads Drive Revenue Growth
Alphabet reported high revenue and profit after buoyant internet ad sales made up for heavy spending on a slew of unprofitable newer products and projects, such as self-driving cars and smartphones. Revenue, excluding payments to partner sites, rose to $18.3 billion, the company said in a statement Thursday. Profit before certain items climbed to $9.06 a share.
Gains in Google’s core ads business continued to offset spending on what the company calls Other Bets -- projects like the Fiber internet service and autonomous vehicles.
Google has rolled out new ad features for mobile devices. The total number of ads clicked on Google’s websites jumped 42 percent in the latest quarter, thanks to more paid ads on YouTube, Alphabet said.
The company also announced a new plan to repurchase just over $7 billion of its Class C stock.
"Mobile search and video are powering our core advertising business and we’re excited about the progress of newer businesses in Google and Other Bets," Chief Financial Officer Ruth Porat said in the statement.
Google’s Other revenue line, which includes the enterprise business, grew 39 percent to $2.4 billion in the third quarter.
Losses continued to mount at Alphabet’s Other Bets divisions, which include more ambitious efforts. Other Bets generated revenue of $197 million in the latest period. But operating losses were $865 million, suggesting heavy investment by the company.