Alphabet, the parent company of Google, on Monday announced its third-quarter earnings, revealing a 20% increase in revenue compared to last year.
The increase leaves the company with $40.5-billion in revenue, with a 23% increase in operating income as well.
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“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,” said Google CEO Sundar Pichai.
Though the revenue numbers look good, the company did not meet analyst expectations. Alphabet’s earnings per share came in at $10.12 where $12.42 was expected, causing the company’s shares to fall according to a report by CNBC.
Meanwhile, Google’s advertising revenue increased to $33.9-billion compared to last year’s $28.9-billion.
Google’s “other” revenue, which includes its hardware, also grew from $4.64-billion to $6.42-billion in the past year.
“We continue to invest thoughtfully in talent and infrastructure to support our growth, particularly in newer areas like Cloud and machine learning,” Alphabet and Google CFO Ruth Porat noted.
Earlier this month, Google launched its new Pixel 4 smartphones and is set to debut cloud-based gaming service Stadia in November.
The company is also reportedly attempting to break out into the wearables market by buying Fitbit.
Feature image: Google
