Google's parent company, Alphabet, has just had a really good third quarter as it reported more than $7 billion stock exchange this month.
Alphabet recently recorded revenue of around $22.5 billion in the third quarter that ended in Sept. 30. This number was significantly higher than the booked $18.7 billion in the same quarter last year, pushing the company's adjust net income to $5 billion, unlike its net profit of only $4 billion the previous year.
This makes Google's earnings at $9.06 per share in comparison to the $7.35 per share last year. It is also a relative increase to what analysts expected Google to earn — $8.64 per share and $22.5 billion revenue.
Alphabet's Chief Financial Officer Ruth Porat credited a lot of its revenue growth to the rising video ad profit of YouTube. Additionally, CEO Sundar Pichai praised how YouTube has continued to shine as a major video ad platform for several big brand advertisers on Thursday's earnings call.
Google's advertisement revenue grew by 18.1 percent in the third quarter to $19.82 billion, which accounted for its total profit to rise by 89.1 percent.
Aside from this, another key area that analysts and investors paid close attention to was Alphabet's other stakes. This included its business shares on Google Fiber, Verily and Nest. These other bets brought $197 million to the company in the third quarter in contrast to only $141 million the previous year, although it reported operating losses amounting to $865 million this year.
Advertisers pay less marketing on mobile devices than advertising on desktop computers to get a hold of more consumers. This is mainly because more people spend extra time on their smartphones, and they're also likely to click on more Google ads.
Paid clicks, whenever users click on different advertisements, went up to 33 percent, which is a significant increase from the 24 percent in the second quarter. The cost per click or CPC, the average price brand companies pay Google for every click, however, fell by 11 percent after it also dropped 7 percent in the second quarter.
One of the company's fastest growing sectors, its cloud services and hardware business, also recorded the fastest income growth of $2.4 billion in revenue, a 39 percent increase in contrast to only $1.7 billion in the same quarter of last year. This sector included Google's Cloud storage business, Play Store and hardware sales.
Experts believe Google will probably witness more growth in its hardware and cloud services sectors in the upcoming quarters thanks to its new products, including the Google Pixel phones, Chromecast and Google Home speakers.