Google’s parent company, Alphabet, posted net income of $7 billion on revenues of $40.5 billion for the quarter ending September 30. Revenues gained by 20 percent, but that net income figure represents a 23 percent decline year-over-year (YOY).
“I am extremely pleased with the progress we made across the board in the third quarter, from our recent advancements in search and quantum computing to our strong revenue growth driven by mobile search, YouTube and Cloud,” Google CEO Sundar Pichai said in a prepared statement. “We’re focused on providing the most helpful services to our users and partners, and we see many opportunities ahead.”
As always, Google represented the lion’s share of Alphabet’s profits and revenues, with the firm’s “other bets” coasting to yet another loss, this time of $941 billion. That shortfall is almost certainly why Alphabet’s overall profits were down. (Update: Google later said it was increased R&D spending. –Paul) And as always, advertising revenue contributed most of Google’s revenues; advertising represented about 85 percent of Google’s total revenues.
Google also posted $6.4 billion in “other revenues” related to its Pixel phones, Play Store, and enterprise cloud products. That’s a big gain over the $4.6 billion it contributed a year earlier.