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Alphabet misses on 3Q revenue despite a boost in Google's online ads business

Google’s advertising revenue rose 18% to $28.95 billion
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Alphabet is the parent company of Google, Android, Chrome, YouTube, Waymo and more

Alphabet Inc (NASDAQ:GOOG) topped earnings estimates in its third-quarter results, but shares slipped after a revenue miss.

Google’s parent company reported earnings of US$13.06 per share on revenue of US$33.7 billion compared with $9.57 EPS on revenue of US$27.77 billion in the previous year’s third quarter.

READ: Alphabet's Google hit by data breach and did not report it over regulation fears

The California-based company surpassed Wall Street estimates of US$10.42 EPS, but fell short of revenue expectations of US$34.04 billion.

Shares were down nearly 4% to US$1,056 in Thursday after-hours trading.

"Our business continues to have strong momentum globally, led by mobile search and our many products that help billions of people every day," said Ruth Porat, Chief Financial Officer of Alphabet and Google, in the company’s press release.

Google's advertising business revenue rose to $28.95 billion, up about 18% compared with $24.06 billion last year.

The "other revenues" category, which includes cloud business and hardware sales totaled $4.64 billion compared with $3.5 billion last year.

Alphabet is also the parent company of Android, Chrome, YouTube and self-driving technology company Waymo.

Google was in the spotlight earlier in the afternoon after The New York Times reported that Android founder Andy Rubin was given a US$90 million exit package after the company found sexual misconduct claims against him to be credible.

Google CEO Sundar Pichai sent an email to all Google employees Thursday addressing the report, as per a CNBC report, saying the company has fired 48 people, including 13 senior managers, over the last two years for sexual harassment.

 

Contact Lenore Fedow at [email protected]

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