Today following the bell, Alphabet reported its third-quarter financial performance, including revenue of $18.68 billion in revenue, and adjusted per-share profit of $7.35. Analysts had expected the company to earn an adjusted $7.21 on revenue of $18.53 billion. The company’s revenue ticked up 13 percent compared to its year-ago quarter. Cash flow sits at a strong $6 billion.
Up over a point in regular trading, Alphabet is up over 9 percent after hours following its earnings beat. The news that the Alphabet board authorized a repurchase of up to $5.1 billion of its class C shares certainly doesn’t hurt.
As expected, a strong performance in mobile was a major catalyst for the showing. The company had previously suffered to gain the same traction on mobile that allowed it to dominate the desktop advertising space.
Alphabet CFO Ruth Porat said on the earnings:
Our Q3 results show the strength of Google’s business, particularly in mobile search. With six products now having more than 1 billion users globally, we’re excited about the opportunities ahead of Google, and across Alphabet.
Its third quarter financial report is Alphabet’s first as an umbrella company for Google and Friends. The company explains that this transition is still happening in phases: “For financial reporting purposes, we expect the reorganization will result in disclosing our Google business as a single segment and all other Alphabet businesses combined as Other Bets beginning in the fourth quarter of 2015.”
In its year-ago quarter, Alphabet, then Google, reported $16.52 billion in gross revenue and $13.17 billion in revenue on an ex-TAC basis. The company earned an adjusted $6.35 off of those incomes.
Google’s new CEO, Sundar Pichai, is said to be making an appearance during today’s earnings call. Along with CFO Porat, it should be a good one. Or not.
Let’s all listen to the earnings call together, shall we?