Google parent Alphabet Inc. (NASDAQ:GOOGL) revealed their third quarter financial figures on Thursday. The company reports a 20.2 percent gain in revenue, beating the expectations of many analysts. Revenue in the third quarter stands at $22.5 billion, while last year in the same period, it was $18.7 billion. Last year, the net income of the business was $4 billion. That has reached $5 billion now.
The Alphabet stock was up by 1.6 percent after the announcement.
Mobile and Video Working Well for Google
Google is showing impressive results because of its YouTube and mobile successes. Advertising has grown on these platforms, even as the business, along with Facebook, keeps dominating the mobile advertising space that is growing fast. The total advertising revenue of Google has gone up by 18.1 percent in this quarter.
Earlier, though, investors were wary that Google might get crippled because of the rising mobile market. But that is clearly not the case. People are spending more time on their smartphones, and Google is able to use it to their advantage by publishing advertisements. Smartphones have actually given them a second life.
Advertisement clicks on Google have gone up by 33 percent as well over the same period of last year. This is the fastest growth in the last 4 years.
The business is in fact, now controlling 95 percent of the mobile-search market according to data with Merkle Inc. a digital-marketing agency, primarily because Google is the default search engine on both Apple’s Android and iPhone devices.
Alphabet is Happy With the Results
Ruth Porat, the CFO of Alphabet (NASDAQ:GOOGL), was obviously happy with the financial results. He said, “We had a great third quarter. 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”.
To do better in the mobile space, the business launched their Pixel smartphones earlier this month. However, these phones have actually been designed by HTC. Many other devices with artificial intelligence prowess have also been launched in recent times.
Sundar Pichai, the Chief Executive, is confident that they will be able to take on their rivals Amazon, Samsung, and Apple, even as the business is pushing into artificial intelligence and hardware. By market value, Alphabet is currently the #2 business in the world, behind Apple Inc.
The business recently carried out a restructuring drive to bring in new ideas and become more competitive.