Google parent Alphabet Inc. reported quarterly sales that topped Wall Street estimates, buoyed by steady advertiser spending and the internet giant’s growing e-commerce focus.
Third-quarter revenue, excluding payments to distribution partners, was about $53.6 billion, the company stated. Analysts projected $52.6 billion, according to data compiled by Bloomberg. Profit was $27.99 a share, beating the average estimate of $23.50.
CEO Sundar Pichai has tried to keep Alphabet’s revenue engine chugging along by prioritizing three areas: e-commerce, YouTube and cloud computing. That helped the internet giant rebound from a dour 2020, when some marketers pared their budgets as they coped with the initial shock of the Covid-19 pandemic.
Still, the company’s fortunes remain highly dependent on macroeconomic factors, including supply-chain doldrums that have plagued nearly every industry and could bite retailers and ad companies during the holiday shopping season. In the quarter that ended Sept. 30, Google shrugged off those concerns for now, with marketers still readily spending on Alphabet’s platforms to reach customers.
“Our consistent investments to support long-term growth are reflected in strong financial performance,” Chief Financial Officer Ruth Porat said in the statement.
