Google’s parent company Alphabet reported third-quarter revenue of $46.2 billion, minus traffic acquisition costs, which are the expenses incurred by an internet company to gain qualified traffic on its pages for monetization. That works out to per-share earnings of $16.40.
The increase in revenue represents a 14 percent jump from the same period last year. Last year’s revenue was $40.5 billion.
The year over year percentage growth is less than in 2019. In 2019 the company saw a 20 percent growth from 2018.
“We had a strong quarter, consistent with the broader online environment. It’s also a testament to the deep investments we’ve made in AI and other technologies,” Sundar Pichai, CEO of Alphabet and Google, said in a statement.
The company also reported significant growth in its net income for the third quarter totaling $11.2 billion. Alphabet stock rose more than eight percent in after-hours trading on Thursday.
“Total revenues of $46.2 billion in the third quarter reflect broad-based growth led by an increase in advertiser spend in Search and YouTube as well as continued strength in Google Cloud and Play. We remain focused on making the right investments to support long-term sustainable value,” said Ruth Porat, Chief Financial Officer of Alphabet.
The turnaround in revenue is crucial for Alphabet as the company posted its first-ever revenue decline in the company’s history last quarter.
The advertising revenue for the company in the third quarter was $37.1 billion. The revenue increased from $33.8 billion in the same quarter a year before.
Advertising revenue for Google went up nearly 10 percent compared to last year, with search advertising revenue growing 6.5 percent and YouTube ad revenue growing by 32 percent.
Google Cloud and YouTube also beat expected growth. Google Cloud Computing Services is a suite of services that use the same software which Google uses for Google search, Gmail, and YouTube. Google Cloud offers users Google Workspace, formerly G Suite, enterprise versions of Chrome OS and Android, and more.
Google reported those services generated $3.44 billion in revenue, which is up from $2.4 billion a year prior.
Meanwhile, popular video platform YouTube saw revenue of $5.04 billion. That revenue was up from $3.8 billion a year prior.
Other revenue sources, such as Google Play and hardware that the company sells, reported $5.48 billion in revenue for the quarter.
Alphabet’s current assets also come in higher than 2019 numbers for the same quarter. In 2019 the company had $275.9 billion in total assets in the third quarter compared to the current $299.2 billion during the 2020 third quarter.
The company did experience some losses in less well-known areas of Alphabet’s portfolio. For example, Alphabet’s self-driving car company, Waymo, continued to generate losses for the company. Waymo experienced an operating loss of $1.1 billion against $178 million in revenue.