The third quarter of Alphabet showed growth in search advertising revenue and strong growth in YouTube

News

The third quarter of Alphabet showed growth in search advertising revenue and strong growth in YouTube

04.11.2020 News

Shares of Alphabet, which rose 18.2% over the past 6 months, rose 9% after closing trading on Thursday when the global advertising giant announced significant improvements in the reporting quarter.

Google’s parent financial report far exceeded analysts’ expectations and showed a resumption of advertising revenue growth after reporting a drop in revenue for the first time in its history. The situation was related to the crisis of the COVID-19 pandemic, when many advertisers reduced their costs, especially in the tourism sector.

The third quarter saw a recovery in the online advertising market, which was also proved by Snap and Pinterest, announcing an increase in advertising revenue over the past 3 months to September 30.

Market analysts noted that the success of the 3rd quarter of Google was partly due to the growth of political advertising in the run-up to the November 3 US presidential election.

Alphabet reported earnings per share increase of 62% (compared to last year’s value) to $ 16.40, which is significantly higher than the average analytical forecast of $ 11.29.

Total quarterly revenue rose to $ 11.2 billion due to reductions in some capital and personnel costs. At the same time, the company warned that it does not plan to reduce its investment in cloud business development, highlighting it as a priority.

Total revenue rose 14% to $ 46.17 billion, also above analysts’ expected $ 42.90 billion.

80% of Alphabet’s total revenue has traditionally come from advertising, amounting to $ 37.10 billion. That is higher than $ 33.80 billion a year earlier. Search engine revenue grew 6%, with YouTube’s strongest growth of 32% to about $ 5.04 billion, up from an estimated $ 4.39 billion.

The number of paid subscriptions to music and paid premium YouTube services has grown to more than 30 million, YouTube TV has added more than 3 million subscribers.

The cost of traffic (TAC) was $ 8.17 billion, which is better than analysts expect of $ 7.66 billion.

Google Cloud’s cloud sales generated $ 3.44 billion, better than Wall Street’s $ 3.32 billion. Alphabet said that from the next financial quarter will begin publishing the profits of its cloud division, which will allow investors and analysts to “assess progress.”

Revenue for the third quarter from sales of equipment was $ 5.48 billion compared to $ 4.05 billion a year earlier.

The revenue of the unprofitable division “Other Articles”, which includes the autonomous driving company Waymo, as well as the research company Life Sciences Verily, increased by $ 178 million compared to $ 155 million a year ago, with losses of $ 1.10 billion compared to $ 941 million a year earlier.

Asked about the Justice Department’s lawsuit alleging a monopoly on the search advertising market, the company’s management said it considered the allegations “deeply flawed” and confident of “significant benefits to its search engines for consumers.”

Alphabet CEO Sundar Pichai said that considering complaints in court would create “certainty, clarity and opportunity.”

Alphabet CFO Ruth Porat has warned investors that increased quarantine measures during the COVID-19 pandemic could affect advertising demand. The company did not give a forecast for the next quarter.

Other articles

  • Exxon Mobil announces record depreciation of its gas assets by $ 20 billion
    News

    Exxon Mobil announces record depreciation of its gas assets by $ 20 billion

    The American oil and gas giant Exxon Mobil had one of the worst years in its history. Exxon shares have fallen by 45.36% since the beginning of 2020. The company has lost money for three quarters in a row, and in August they were excluded from the benchmark index of “blue chips” Dow Jones Industrial […]

  • Google has invested in the Indonesian unicorn Tokopedia
    News

    Google has invested in the Indonesian unicorn Tokopedia

    IT giant Google and Singapore’s state-owned investment company Temasek have invested in Indonesia’s largest online store Tokopedia, writes Nikkei Asian Review. The amount of investments is not disclosed. In October, Bloomberg reported that Tokopedia was going to raise about $ 350 million from Google and Temasek. This is Google’s second investment in the Indonesian unicorn. […]

  • L’Oreal has created a virtual make-up for video conferences
    News

    L’Oreal has created a virtual make-up for video conferences

    The French company has developed an augmented reality application for digital makeup. The Signature Faces application allows you to apply filters to your face in real time. “We believe that everyone is beautiful by themselves, but in a world where the camera is always on, it’s normal to want to “play” with filters. We want […]

  • General Motors reports profit growth of 74%
    News

    General Motors reports profit growth of 74%

    Shares of General Motors, down by 3.7% since the beginning of the year, rose by 3.9% in trading after the company announced the results of the 3rd quarter, which ended on September 30. General Motors reported earnings per share increase of 65% to $ 2.83, which was higher than analysts expected $ 1.38. The amount […]

  • The net loss of the world’s largest cinema network increased 16.5 times in the third quarter
    News

    The net loss of the world’s largest cinema network increased 16.5 times in the third quarter

    AMC Entertainment Holdings, which owns the world’s largest network of cinemas, presented its financial report for the third quarter of 2020. His company ended with a net loss of $ 906.5 million – 16.5 times worse than last year. In the third quarter, the company’s cinemas began to reopen after a five-month of lockdown due […]

  • Amazon reported a 37% increase in revenue
    News

    Amazon reported a 37% increase in revenue

    Shares of Amazon, which rose by 73.8% since the beginning of the year (more than the growth of Apple, Microsoft, Google and Facebook), fell 2% after closing trading on Thursday, when the company released a report for the 3rd quarter, which ended September 30. Amazon set a new revenue record, e-commerce increased sales by 57% […]

  • Twitter shares fell more than 17%
    News

    Twitter shares fell more than 17%

    According to trading data, securities of the microblogging service Twitter Inc. after the close of the main trading session in the US fell in price by more than 17%, also according to financial statements, in the red were the shares of US technology giants Amazon, Apple and Facebook, only Alphabet reporting pleased investors. Thus, shares […]

Read also

The third quarter of Alphabet showed growth in search advertising revenue and strong growth in YouTube
News

Hundreds of thousands of airline workers could lose their jobs

Hundreds of thousands of workers could lose their jobs in the aviation sector if states do not provide the additional assistance. “In the absence of additional government measures to provide assistance and open borders, hundreds of thousands of airline jobs will disappear, ” – said the executive director of the International Air Transport Association (IATA) […]

Next
The third quarter of Alphabet showed growth in search advertising revenue and strong growth in YouTube
News

The Alphabet will invest $ 380 million to Bebor Technologies startup

The parent company of the Google – Alphabet announced that the company will invest to Bebor Technologies $ 380 million, –  reports The Wall Street Journal. According to the deal, the Alphabet company will receive shares in the Bebor Technologies for $ 148 million. Dine Green, one of the head of Alphabet company expressed positive […]

Next
The third quarter of Alphabet showed growth in search advertising revenue and strong growth in YouTube
News

Twitter will pay Turkey a fine in the amount of $ 51 thousand

Turkish government for the first time resolved  to apply penalties to the social network Twitter. Recently, Turkey  turned to Twitter with a formal request to delete from the site all the information with an extremist nature, the information that supports  terrorism. Twitter declined the request of the Turkish government and didn’t delete the corresponding positions […]

Next
The third quarter of Alphabet showed growth in search advertising revenue and strong growth in YouTube
News

Foreign pharmaceutical company will invest $ 50 million in the construction of a plant in the Kiev region

Foreign pharmaceutical company Euro Pharma International is building a new pharmaceutical plant in Kiev Svyatoshinsky district, Kyiv region. The first phase of the project start is scheduled for autumn 2016. To date, the company estimates the volume of investments of $ 50 million. “I am very pleased that the foreign investors are interested in our […]

Next
The third quarter of Alphabet showed growth in search advertising revenue and strong growth in YouTube
News

Oschadbank sued the Sberbank of Russia

Ukrainian state bank claims Sberbank of Russia in  violation of intellectual property rights. State Savings Bank of Ukraine has filed a lawsuit against Sberbank of Russia for copyright infringement.Oschadbank insists on the illegality renaming of Ukrainian “daughter” of the Sberbank of Russia in Sberbank and alleges a violation of their intellectual property rights. The suit […]

Next
The third quarter of Alphabet showed growth in search advertising revenue and strong growth in YouTube
News

The cost of Tesla fell by a third in a month

Since the beginning of February, the market value of the American electric car manufacturer Tesla Inc. decreased by 34%. So, before the stock quote Tesla Inc. decreased following the fifth trading session in a row, losing a total of 21% during this period. The price of Tesla securities peaked on January 26, when the capitalization […]

Next
The third quarter of Alphabet showed growth in search advertising revenue and strong growth in YouTube
News

Walt Disney has invested $ 400 mln. to the creation of new cable channel

The Walt Disney Company has decided to invest in the creation of successful new cable channel called Viceland, which involve “fresh” audience and raise ratings. A few weeks after the initial investment, Disney has doubled the amount of investment in a digital media company Vice Media; as a result of the total transaction amount is […]

Next
The third quarter of Alphabet showed growth in search advertising revenue and strong growth in YouTube
News

Bill Gates warned against buying Bitcoin

Microsoft founder Bill Gates has warned investors against buying the cryptocurrency Bitcoin. Bloomberg reports. “If you have less money than Ilona [Mask], you probably need to be careful. Ilon has a lot of money and he’s very advanced, so I’m not worried that his bitcoins will rise and fall chaotically,” Gates said. Gates fears that […]

Next
The third quarter of Alphabet showed growth in search advertising revenue and strong growth in YouTube
News

EBRD reduces its financing to Ukrainian economy

The European Bank for Reconstruction and Development (EBRD) expects the means amount reduction which has invested in the Ukrainian economy. According to “European truth” newspaper, Sergey Guriev,the chief economist of the EBRD, told about it in his interview. He explained:”Really, our volume of investment this year will have been less than previous as we don’t […]

Next
The third quarter of Alphabet showed growth in search advertising revenue and strong growth in YouTube
News

AstraZeneca defended its COVID vaccine

The AstraZeneca COVID vaccine is not perfect, but it will save thousands of lives. The company’s CEO Pascal Sorio said this. According to him, AstraZeneca will become the largest producer of COVID-vaccine in the world, reaching the production of 200 million doses by April. “Is the vaccine perfect? No. However, it is great. Who else […]

Next
The third quarter of Alphabet showed growth in search advertising revenue and strong growth in YouTube
News

The US court has lifted the ban on TikTok

Court of the United States in late Sunday night temporarily blocked ban by the administration of President Donald Trump on downloading the TikTok program. This was reported by Reuters on Monday, September 28. Considered, that that the ban was to take effect on Sunday at 23:59 local time (Monday at 6:59 Kyiv time). However, the […]

Next
The third quarter of Alphabet showed growth in search advertising revenue and strong growth in YouTube
News

For the first time in Ukraine, an online casino license has been issued

The first license for an online casino in Ukraine was issued to SpaceX LLC. The Commission for Regulation of Gambling and Lotteries made the relevant decision on Tuesday, February 2. The license entitles the company to carry out “activities related to the organization and conduct of casino games on the Internet” legally. Serhiy Potapov is […]

Next
sweden30
Analytics

Ukraine — Sweden: the centuries-old traditions of cooperation are continuing

During the times of Kyivan Rus people which came from Scandinavia, the Vikings, were often called Varangians. In the 19th century, according to the chronicle, they had not only strong trade but also political relations with Russia (it is worth mentioning that the wife of Yaroslav the Wise, princess Ingigerda, was the daughter of Swedish […]

Next
The third quarter of Alphabet showed growth in search advertising revenue and strong growth in YouTube
News

Judge Finds 1977 Egyptian Pact Is Not Valid for 2015 US Divorce

A New York judge has determined that an Islamic marriage contract entered into during a 1977 wedding ceremony in Egypt is not binding on the court’s consideration of the couple’s divorce now. While Westchester County Supreme Court Justice Lawrence Ecker said New York courts have recognized that the marriage contract, called a “mahr,” can be enforceable, Ecker […]

Next
The third quarter of Alphabet showed growth in search advertising revenue and strong growth in YouTube
News

The billionaire Naguib Sawiris wants to buy an island for refugees and for organization of this issue will create a special corporation

In September Egyptian billionaire Naguib Sawiris said in his twitter about of his thoughts of ??buying the island somewhere in Greece or in Italy, to settle migrants and refugees there. This proposal was very popular in twitter, so Sawiris, who is one of the ten richest people in Africa, whose fortune is estimated at $ […]

Next
The third quarter of Alphabet showed growth in search advertising revenue and strong growth in YouTube
News

The AMCU starved the Ukrainian company of the brand Rehau

The Antimonopoly Committee drew the line under the proceedings between the Ukrainian “daughter” of the German firm Rehau and its namesake –  the Kyiv production company Rehau. Both work in the window market under the Rehau brand. By the decision of the AMCU the Rehau production company is obliged within a month to abandon from […]

Next