The third quarter 2021 went great for Alphabet, the parent company of Google. Better than market expectations. Revenues come in 65.12 billion dollars, almost two billion over the 63.34 expected on the stock exchange. And the same goes for stock value: a single share is worth $ 27.99, compared to the 23.48 expected. Compared to last year, the turnover rises by 41%.
Google: revenues above expectations for the third quarter of 2021
Nearly two billion in revenue beyond forecasts are an important confirmation of Google’s health. Especially because, even subtracting Alphabet’s advertising fees, the revenue stands at around 53.62 billion dollars, compared to the expected 51.8 billion.
In addition to higher revenues, net profits also grew, equal to 18.9 billion dollars. The reason for so many earnings must undoubtedly be sought in the advertising engine present in Google Search and the one in YouTube. If other companies in this period have suffered from Apple’s new privacy policies and tracking for advertising purposes, Google grows by 43% and reaches 53.13 billion dollars.
Alphabet has also done better at keeping costs down. In fact the company has converted to operating profits 32% of sales, compared to 24% last year. It also grows Google Cloud, which reports a 45% increase in revenues to 4.99 billion.
I also grow employees of Alphabet, which go up to 150 thousand at the end of September (last year they were 132 thousand). The company then announced that it will adjust its real estate assets to accommodate the growing number of employees.
In short, it seems that on every front Google is doing better. And this without even taking into account the recent launch of the Pixel 6 and Pixel 6 Pro, with which the company hopes to carve out even a more significant place in the hardware market.