Much to the delight of investors, Google’s parent company, Alphabet Inc., reported earnings of $9.06 per share on revenue of $22.45 billion. Analysts were expecting EPS of $8.64 on revenue of $22.05 billion.
“Mobile search and video are powering our core advertising business and we’re excited about the progress of newer businesses in Google and Other Bets,” writes CFO Ruth Porat in the third-quarter earnings statement.
Operating expenses as a percentage of revenue were down 1% compared with Q3 2015. The company also appears to be mitigating expenses within its experimental catchall segment, succinctly titled “other bets.” Revenue for its “other” category was up 39% year-over-year. Meanwhile, losses shrunk from $980 million in Q3 of last year to $865 million for Q3 2016. Alphabet’s stock shot up 2% in after-hours trading before coming back down to this afternoon’s closing price. RR