Google parent Alphabet Inc. reported a 24 percent jump in quarterly revenue on robust mobile advertising. The company’s shares were up nearly 3 percent at $1,020 after the bell on Thursday. They have gained 25 percent this year.
On a consolidated basis, the company’s revenue rose to $27.77 billion in the third quarter ended Sept. 30. Ad revenue surged 21.4 percent to $24.07 billion. Google is expected to generate about $72.42 billion in net digital ad revenue worldwide this year, a 15.7 percent jump from a year earlier, according to research firm eMarketer.
Paid clicks, where an advertiser pays only if a user clicks on ads, rose 47 percent. Analysts on average had expected an increase of 46.1 percent, according to data and analytics firm FactSet.
Alphabet’s total traffic acquisition costs, a measure of how much money the company spends to attract users to its search engine, rose 31.6 percent.
Losses from Alphabet’s “Other Bets” – separate business units including the Waymo self-driving car unit, Google Fiber, thermostat-maker Nest and life sciences firm Verily – narrowed to $812 million from $861 million. The company’s net income rose to $6.73 billion, or $9.57 per Class A and B share and Class C capital stock, in the third quarter ended Sept. 30 from $5.06 billion, or $7.25 per share, a year earlier.