Alphabet Inc (NASDAQ:GOOG) 3Q17 earnings were released after closing bell tonight, and the company posted GAAP earnings of $9.57 per share on $27.8 billion in revenue, a 20% increase (23% in constant currency) year over year. Analysts had been expecting earnings of $8.33 per share on $27.2 billion in revenue. In last year’s third quarter, the company reported $22.45 billion in revenue and $7.25 per share in GAAP earnings. The shift from non-GAAP to GAAP reporting continues.
Alphabet 3Q17 earnings
Google Properties revenues rose from $16.1 billion last year to $19.7 billion, while Google Network Members’ properties revenues rose from $3.7 billion last year to $4.3 billion this year. Total Google ad revenues rose to $24.1 billion from $19.8 billion last year. Consensus for Google Sites revenue stood at $19.3 billion. Traffic acquisition costs to Google Network Members rose to $3.1 billion, while traffic acquisition costs to distribution partners rose to $2.4 billion. Total traffic acquisition costs rose to $5.5 billion.
Google other revenues rose to $3.4 billion from $2.4 billion last year. Google segment revenues rose to $27.5 billion from $22.3 billion last year. Other bets revenues jumped to $302 million from $197 million last year; Other bets operating losses narrowed slightly to $812 million from the year-ago operating losses of $861 million.
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“We had a terrific quarter, with revenues up 24% year on year, reflecting strength across Google and Other Bets,” said Chief Financial Officer Ruth Porat in a statement on the Alphabet 3Q17 earnings release. “Our momentum is a result of investments over many years in fantastic people, products and partnerships.”
Cost per click keeps stabilizing?
Aggregate paid clicks grew 47% year over year and 6% quarter over quarter. Paid clicks on Google properties grew 55% year over year and 7% sequentially, while paid clicks on Google Network Members’ properties jumped 10% year over year and 2% sequentially. Aggregate cost per click declined 18% year over year but grew 1% sequentially. Cost per click on Google properties was down 21% year over year but up 1% sequentially, while cost per click on Google Network Members’ properties declined 5% year over year but was flat sequentially.
Following the Alphabet 3Q17 earnings release, the company’s stock surged in after-hours trading, climbing as much as 3.22% to $1,023.22.