Google (GOOG, GOOGL) parent company Alphabet reported its Q3 2019 earnings on Monday beating analysts’ expectations on the top line but missing on earnings per share. Here are the most important numbers from the report, as well as what analysts were expecting as compiled by Bloomberg's estimates.
Revenue: $33.01 billion excluding traffic acquisition costs versus $32.72 billion expected
Earnings per share: $10.12 versus $12.35 expected
The stock was off by 2% after the company reported earnings.
Google saw an increase in spending on research and development, sales and marketing, and general administrative fees in Q3 2019 compared to the same time last year.
The company has been stepping up its cloud initiative, as it attempts to catch up with market leaders Amazon and Microsoft. Google doesn’t break out its cloud earnings, but CEO Sundar Pichai announced during the Q2 2019 earnings call that the company had achieved an $8 billion yearly run rate for its cloud division.
Google is also expanding its sales force to sell its cloud products to big businesses. It doesn't matter that companies may already have contracts with Amazon and Microsoft, either, as the majority of the major cloud providers offer a certain level of interoperability. That means there's still room for Google to jump into the fray.
The company's recent hardware releases, including the Pixel 4 and Pixel 4 XL smartphones, won't have an impact on this quarter's earnings, as they were only released on Oct. 15.
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