Google delivers a big earnings beat

• Alphabet, Google's genitor company, reported its third-quarter net connected Tuesday.
• The institution hit connected revenue, EPS, its ads business, and Google Cloud revenue, which grew 35% twelvemonth complete year.
• CEO Sundar Pichai will section questions from analysts during a 4:30 p.m. ET net call.

Google's genitor company, Alphabet, released better-than-expected net for nan 3rd 4th aft nan closing doorbell connected Tuesday.

Revenue from Google Cloud grew 35% twelvemonth complete twelvemonth to $11.4 billion, bolstered by "accelerated growth" successful nan company's AI products, nan institution said.

The company's shares were up much than 3% successful after-hours trading.

Here are nan cardinal numbers for nan 3rd 4th compared to analysts' estimates:

• Earnings per share: $2.12 vs. $1.83 expected
• Revenue: $88.27 cardinal vs. $86.44 cardinal expected
• Google Advertising: $65.9 cardinal vs. $65.5 billion
• YouTube advertizing revenue: $8.92 cardinal vs. $8.89 cardinal expected
• Google Cloud revenue: $11.35 cardinal vs. $10.79 cardinal expected

Source for expert expectations: Bloomberg

Alphabet and Google CEO Sundar Pichai said nan company's AI investments were "paying off."

"In Cloud, our AI solutions are helping thrust deeper merchandise take pinch existing customers, pull caller customers and triumph larger deals," Pichai added. "And YouTube's full ads and subscription revenues surpassed $50 cardinal complete nan past 4 quarters for nan first time."

Pichai besides gave an update connected nan company's evolving hunt product, which has been rolling retired AI Overviews, aliases AI-generated summaries, successful Google results. The AI results will now scope complete 1 cardinal users connected a monthly basis, he said, and ads successful AI Overview are "performing well."

Google besides said its labor are utilizing AI products astatine work.

"Today, much than a 4th of each caller codification astatine Google is generated by AI past reviewed and accepted by engineers," Pichai said.

The hunt giant's net arrived little than 3 months aft a federal judge ruled nan institution violated antitrust law by illegally maintaining a hunt monopoly. Its multibillion-dollar-a-year hunt woody pinch Apple and different paid partnerships came nether nan microscope. A imaginable breakup hangs complete nan company's head, and a prolonged ineligible conflict is expected.

Google is besides fighting a separate antitrust battle complete its adtech business. The DOJ and 17 authorities attorneys wide alleged it utilized acquisitions and anticompetitive ad-auction strategies to build a monopoly. That case, which could person sweeping ramifications for nan integer advertisement industry, is still underway, pinch closing arguments adjacent period and a ruling expected successful nan caller year.

The institution successful October besides announced a awesome reorganization amid its increasing AI efforts, moving nan Gemini app squad nether nan Google DeepMind squad led by Demis Hassabis.

"Google's results this 4th show that it tin execute contempt superior regulatory threats to its ads business," Emarketer elder expert Evelyn Mitchell-Wolf told Business Insider.

"As title rises astir its halfway hunt business, Google's defense, grounded successful AI, is locked in, and it heads into nan vacation play good positioned to triumph advertisement budgets," Mitchell-Wolf added.

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