Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG), the parent company of Google, reported Third-quarter financial results that surpassed the consensus estimates of Wall Street analysts.
The company’s shares surged during the extended trading hours on Wednesday, around 5:23 p.m. in New York. The GOOGL stock climbed nearly 0.81% to $824 per share and GOOG stock went up 1.17% to $804.62 per share.
In a statement, Alphabet CFO Ruth Porat said, “We had a great third quarter, with 20% revenue growth year on year, and 23% on a constant currency basis. 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.”
The company’s board of directors approved a buyback of its Class C (GOOG) stock worth up to $7.01 billion.
Alphabet Q3 financial results
Alphabet reported that its adjusted earnings were $9.06 per share and revenue was $22.45 billion for the third quarter.
Wall Street analysts expected the tech giant to deliver earnings of $8.63 per share on $22.05 billion in revenue.
Alphabet’s GAAP operating income was $5.77 billion and operating margin was 26%. It ended the quarter with $83.06 billion in cash, cash equivalents, and marketable securities. Its free cash flow increased to $7.29 billion from $3.76 billion in the same period last year.
Google segment revenues
The tech giant said its Google segment revenues were $22.25 billion. Google’s operating income was $6.78 billion.
Google websites achieved revenues of $16.09 billion, an increase of 23% from the year ago quarter. Google Network Members’ website recorded $3.73 billion in revenues, up 1%. Google advertising revenues went up 18% to $18.82 billion and Google other revenues rose 39% to $2.43 billion.
Alphabet said its revenue from Other Bets was $197 million and operating loss was $865 million during the period. Last year, the company’s Other Bets posted $141 million in revenue and a loss of $980 million.
Its Other Bets include Google Fiber, Nest, self-driving cars, and X, its research facility focused on moonshot projects.
Kerry Rice, an analyst at Needham & Co. commented that the company’s latest performance demonstrated that its transition is proceeding well. Alphabet is “just one of the best positioned companies for the future of the internet,” said Rice as quoted by Reuters.