Alphabet Q3 consolidated revenue zooms 41% to $65 billion
SVP and CFO Ruth Porat noted that the company's revenue performance in the quarter was rooted in advertiser spend, elevated consumer online activity and Google Cloud
Operating expenses were $16.5 billion, up 19%. The increase in R&D expenses were driven primarily by headcount growth. The growth in sales and marketing expenses were driven by headcount growth, followed by the continued ramp-up of spending on ads and promo in contrast to the pull back in the third quarter last year. Finally, the increase in General and Administrative Expenses (G&A) reflects the impact of charges relating to legal matters, followed by headcount growth.
Total Google Services revenues were $59.9 billion, up 41%. Google Search and other advertising revenues of $37.9 million in the quarter were up 44%, with broad-based strength across our business, led by strong growth in retail.
YouTube advertising revenues of $7.2 billion were up 43% due to strength in both direct response and brand advertising. The deceleration in the growth rate versus the second quarter was driven by lapping a strong recovery in brand in the third quarter of last year.
“Network advertising revenues of $8 billion were up 40%. Other revenues were $6.8 billion, up 23%, driven by growth in YouTube non-advertising revenues and hardware, which benefited from the addition of Fitbit revenues. Google Services operating income was $24 billion, up 66% and the operating margin was 40%,” Porat said.
