Alphabet Revenues Up 11 Percent in Q3 on Stronger Ad Sales

Google parent Alphabet reported a net income of $19.7 billion on revenues of $76.7 billion in the quarter ending September 30, 2023. Those figures represent year-over-year (YOY) gains of 41.5 percent and 11 percent, respectively.

“I’m pleased with our financial results and our product momentum this quarter, with AI-driven innovations across Search, YouTube, Cloud, our Pixel devices, and more,” Alphabet and Google CEO Sundar Pichai said. “We’re continuing to focus on making AI more helpful for everyone; there’s exciting progress and lots more to come.”

Alphabet/Google’s biggest business by far was Search, with $44 billion in revenues. YouTube advertising revenues were up 12 percent to $7.95 billion in the quarter. And total revenues from ads hit $59.65 billion, up 10.5 percent year YOY. So advertising was responsible for 71.4 percent of the company’s total revenues.

Google Cloud delivered another $8.4 billion in revenues, up 22 percent YOY. But investors dinged Google for its relatively poor performance against the market leaders in cloud, Amazon and Microsoft, sending Alphabet’s share price down 6 percent in after-hours trading.