Google Parent Alphabet Brings Big Profit

Google parent company Alphabet reported third-quarter earnings on Tuesday.
The company outpaced revenue, EPS, advertising business, and Google Cloud revenue, which grew 35% year over year.
CEO Sundar Pichai He said that the company’s investments in artificial intelligence were “paying off”.

Google’s Parent company Alphabet reported better-than-expected third-quarter profit after the closing bell on Tuesday.

The company said revenue from Google Cloud rose 35% year over year to $11.4 billion, fueled by “accelerating growth” in the company’s AI products.

The company’s shares rose more than 5% in after-hours trading.

Key figures for the third quarter compared to analysts’ forecasts are as follows:

earnings per share: $2.12 and $1.83 expected
Revenues: $88.27 billion, expected $86.44 billion
Google Advertising: 65.9 billion dollars etc. $65.5 billion
YouTube ad revenue: $8.92 billion, expected $8.89 billion
Google Cloud revenue: $11.35 billion, expected $10.79 billion

CEO of Alphabet and Google Sundar Pichai He said that the company’s investments in artificial intelligence were “paying off”.

“Our AI solutions in the cloud help further deepen product adoption with existing customers, attract new customers, and win larger deals,” added Pichai. “And YouTube’s total advertising and subscription revenues surpassed $50 billion for the first time in the last four quarters.”

Pichai gave an update on the company’s evolving search product, which introduces AI-generated answers called AI Overview in Google results. He said the AI results now reach more than 1 billion users on a monthly basis and that ads in the AI Overview are “performing well.”

Google said its employees are increasingly using artificial intelligence products in the workplace.

“Today, more than a quarter of all new code at Google is generated by AI and then reviewed and accepted by engineers,” Pichai said. he said.

The search giant’s earnings come in less than three months federal judge rules company violated antitrust law by illegally maintaining a search monopoly. Google is also struggling a separate antitrust war It’s about the ad tech business. A potential separation is on the company’s agenda and long-term legal battles are expected.

Pichai briefly touched on the legal challenges during Tuesday’s meeting.

“We plan to defend these cases vigorously, and some of the Justice Department’s initial proposals were broad,” he said. He added that if approved, the proposed solutions “could lead to unintended consequences, especially for the dynamic technology sector and American leadership there.”

The company announced a major restructuring in October, moving its Gemini app team under the Google DeepMind team led by Demis Hassabis, amid growing artificial intelligence efforts. Pichai compared the reorganization to a neural network that “forms new synapses.”

“Google’s results this quarter suggest it can perform despite serious regulatory threats to its advertising business,” Emarketer senior analyst Evelyn Mitchell-Wolf told Business Insider.

“As competition in the core search business increases, Google’s AI-based defenses are locked in and it enters the holiday season in a good position to win advertising budgets,” Mitchell-Wolf said. he added.

Alphabet says fully autonomous vehicle startup Waymo reaches 150,000 total paid rides per week More than 1 million fully autonomous miles. Pichai said this is “the first time any AV company has achieved this kind of mainstream usage.”

“Waymo has multiple avenues to market, and with its sixth-generation system, it has reduced unit costs even more significantly without sacrificing security,” Pichai said.

Alphabet is working on additional Waymo partnerships with network partners and fleet managers for scaling purposes, the CEO said.

Google’s chief operating officer responded when asked if the company was seeing any impact on its business ahead of the US presidential election: Philipp Schindler, the company’s ““There was a slight downturn due to election-related ad spending in the third quarter, which was a little more pronounced in YouTube ads.”

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