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Alphabet earnings top Q3 earnings estimates

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Yahoo Finance's Emily McCormick breaks down the numbers to know from Alphabet's Q3 earnings report.

Video Transcript

SEANA SMITH: Well, let's stick with tech because we just got results out from Alphabet. Emily McCormick has that for us. Emily.

EMILY MCCORMICK: Well, Seana, we're taking a look at shares of Alphabet fluctuating in late trading. They are up slightly as we speak now. And that's after the company posted third quarter results that topped consensus expectations. Now on the top line, we had revenue, excluding traffic acquisition costs, growing 41% over last year to reach $53.6 billion. The estimate on Wall Street was for $52.6 billion.

And then if we take a look at the bottom line, earnings per share coming out to $27.99 versus the $23.50 expected, so a pretty big beat there on the bottom line and on profitability here for Alphabet. But if we take a look beneath the surface, a little bit of weakness when we take a look at some of these individual segments.

Google Cloud revenue coming in at $4.99 billion. That was up 7.8% over last quarter, rather, but slightly below estimates for $5.04 billion. And of course, Wall Street is always seeing how that unit does in particular, since it is a competitor to Amazon Web Services and Microsoft Azure, which are both still larger than Google's cloud services at this point.

And then also taking a look here at Google services revenue-- that does include Google's main search advertising business as well-- that did grow 4.9% quarter over quarter to reach $59.88 billion, slightly ahead of estimates. But again, guys, some really strong results here when we take a look just at those top line third quarter revenue, excluding traffic acquisition costs, as well as earnings per share. And that stock is moving slightly to the upside in late trading.

ADAM SHAPIRO: Emily, can you just once again give us the total revenue number and how much that was up year over year?

EMILY MCCORMICK: Absolutely. So our revenue excluding traffic acquisition costs for Alphabet was at $53.62 billion, up 41% over last year. And again, that metric does exclude the cost that Google actually pays to feature Google Search as one of those main search engines. So when you strip out the traffic acquisition costs, again, that up 41% over last year, Adam.