Google parent company Alphabet’s third quarter revenue increased 14 percent from the year before, led by a rebound in advertising revenue for both Google and YouTube. YouTube brought in $5 billion in advertising revenue in the third quarter of 2020 — a sign that advertisers who pulled back on their spending because of the coronavirus earlier in the year may be returning to something resembling normal.
This quarter, the advertising rebound in both search and YouTube helped drive the revenue, Ruth Porat, CFO of Alphabet and Google said in a statement announcing the earnings.
Google’s advertising division brought in revenue of $37.1 billion, an increase from $34 billion last year. YouTube ads revenue increased 30 percent from $3.8 billion in the third quarter of 2019.
This quarter was a sharp contrast to the disappointing second quarter of 2020, where Google saw the first revenue decline in its history. This quarter, Google returned to growth, with revenue of $46.2 billion in the third quarter, up from $40 billion a year ago, and net income of $11.24 billion, up from $7.06 billion last year.
Google’s “other” department, which includes hardware, cloud services, and the Play Store, had revenue of $5.4 billion, up from $4 billion. Its “other bets” segment — which includes Waymo and Verily— had revenue of $178 million, but remained money-losers for the company, to the tune of a $1.1 billion. That’s worse than this time last year. Google’s Cloud division had revenue of $3.44 billion, up from $2.3 billion a year ago, and its Search segment had revenue of $26.3 billion, up from $24.7 billion.
Developing…
