Thursday, October 26, 2017

Alphabet posts 24% revenue increase over same quarter last year

While other smartphone makers are struggling to pull a profit in Q3 2017, Google's parent company Alphabet had no trouble beating Wall Street's expectations. Alphabet's adjusted earnings per share is $9.57 versus the $8.33 predicted by analysts. Sales this quarter are up $27.77 billion compared to the $22.45 billion last year during the same quarter. That's a 24% increase in revenue over the same quarter last year, though Alphabet spent more to get those gains.

The company attributes its growth to increased search volume and ad clicks on Google ads across the world, with Asia highlighted as a growing segment of the company's revenue. Chief Financial Officier Ruth Porat says the company is focusing on building products with AI at their core, which she believes Google is leading the way in advancements for AI tech.

Despite all the good news for shareholders, it's costing Alphabet and Google more and more to obtain these results as the company has spent billions of dollars securing deals with Apple and Samsung to remain the default search provider on those devices.

[via CNBC]



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