Alphabet's Q3 gross sales prime $ 46 billion as regulatory headwinds mount
After a profit decline in the previous quarter and the looming difficulties of an antitrust investigation, the Google parent company Alphabet achieved a turnover of 46.2 billion US dollars in the third quarter today. It indicated a business that has benefited greatly from global lockdown orders since the pandemic began.
The numbers were a 14% year-over-year increase in revenue, with Alphabet and Google CEO Sundar Pichai citing the performance as "in line with the broader online environment" and as a validation of the online giant's investment in AI and technology other emerging technologies.
A breakdown of the quarterly numbers shows that total ad revenue was $ 37.1 billion, with search ads generating the lion's share of transportation at $ 26.3 billion.
YouTube ad revenue, which only began to break earlier this year, was over $ 5 billion for the quarter, up from $ 3.8 billion a year earlier. Google-operated real estate revenue was $ 5.7 billion, while the cost of traffic acquisition rose to $ 8.2 billion, compared to $ 7.5 billion last year.
In a statement, Ruth Porat, Alphabet, and CFO of Google added, “Total revenue of $ 46.2 billion for the third quarter reflects broad-based growth driven by an increase in ad spend on Search and YouTube and continued strength from Google Cloud and Play. ”
She also said advertisers had spent money on her platform again over the period, noting how brand advertisers wanted to target an audience that spending on YouTube on TV over the period couldn't reach.
The filing marks a return to growth after Google saw its first annual revenue decline in the second quarter of the year. It also comes two weeks after the Department of Justice (DOJ) filed a lawsuit focusing on the online advertising giant's dominance in the online search market.
In prepared remarks, Pichai responded to the DOJ's ongoing investigation by reiterating his earlier firm defense that "people use Google because they want to, not because they are being forced to."
When asked by financial analysts, he added, “The exam is not new to us and in some cases is now industry-wide, which is not surprising. … We will get involved constructively whenever possible. "
Elsewhere, Google executives also discussed their commitment to investing in technologies that support the ongoing digital transformation of society, such as: B. AI and the Google Cloud offering. This also includes continued investments in its e-commerce platform, with Pichai highlighting the potential synergies between its online shopping, search and YouTube offerings.
“The search captures the intent of the moment. … It was a real asset and as users adapt, advertisers adapt too and you can see that dynamic in real time, ”Pichai said.
"I would say YouTube is an important platform for e-commerce too," he added, pointing out that this could prove attractive to small and medium-sized business advertisers as well, not just high-spending advertisers .
With the DOJ's antitrust opening proceedings against Google set to begin tomorrow in a status hearing, the online giant faces a difficult balancing act in reassuring regulators, continuing to woo consumers, and meeting Wall Street's growth requirements.
"Ultimately, our ability to control is to relentlessly focus on the users and build a product, and that is where most of our energy will flow," Pichai told investors.