Alphabet Announces $18.7 Billion Revenue for Third Quarter

Alphabet reported a 45.2 per cent rise in net income for the third quarter ended September 30 to $3.98 billion, up from $2.74 billion recorded for the same quarter previous year.

Excluding one-time items, the company earned $7.35 pershare, up 17.6% from the year before.

Analysts on average were expecting earnings of $7.21 per share and revenue of $18.53 billion, according to Thomson Reuters I/B/E/S.

Those numbers were well above analyst forecasts of $18.54 billion in quarterly revenue and adjusted EPS of $7.21.

GAAP earnings per share for the quarter were $5.73.

Google said aggregate paid clicks increased 23 percent year-over-year, while aggregate cost-per-click fell 11 percent year-over-year. After-hours trading pulled Alphabet Inc Class C stock up a remarkable 11.02%, indicating the implementation of the new company’s practices is pleasing not only Google’s bottom line but also stock owners.

“The key highlight this quarter was the substantial growth of our mobile search revenue, complimented by ongoing strong contributions from YouTube and our programmatic business”, said Ruth Porat, CFO of Alphabet and Google during an earnings call.

Alphabet’s shares rose almost 9% on Thursday in after-hours trading to $741, giving the new group a market value of about $500 billion and the second-most valuable company after Apple in the S&P 500. To be true, it is now Alphabet, Google’s holding company.

Revenue from mobile search has gone up significantly.

Google CEO Sundar Pichai said those six products include Search, Maps, Chrome, YouTube, Android and Google Play.

She said the corporate structure change lets the company continue to tackle a few of the world’s “biggest problems” in ways that could open doors to new business opportunities at the same time.

More than 50 percent of Google’s searches are now coming from mobile phones. “We expect most users to consume YouTube the way it has been”, he said. The transition of users from desktop to mobile also needs to be given serious attention by Alphabet to make sure the company will be able to continuously get more revenue from the mobile users. Going forward though, Google will report its own results separately from the Other Bets.

The company’s 2015 fourth quarter results, to be released in January, will be the first to show Google’s performance broken up individually from Alphabet’s other businesses.