Alphabet, the newly formed parent company of Internet giant Google Inc, beat Wall Street expectations in its third quarter results Thursday.
The performance reflects the financial results of Google “as it existed prior to the reorganization,” according to the Alphabet statement.
From July to September, the company’s profits rose from 2.74 billion dollars during the same period a year ago to 3.98 billion dollars, Alphabet reported.
Revenue grew 13 per cent to 18.7 billion dollars. Advertising revenue, the company’s biggest source of income, climbed 13 per cent to 16.78 billion dollars.
Analysts had predicted weaker numbers, and Alphabet’s share price rose 10 per cent in after-hours trading.
“Our Q3 results show the strength of Google’s business, particularly in mobile search. With six products now having more than 1 billion users globally, we’re excited about the opportunities ahead of Google and across Alphabet,” said Ruth Porat, finance head of Alphabet and Google.
In August, Google Inc announced the surprise creation of conglomerate Alphabet Inc to hold the internet giant’s increasingly diversified business units and investments at arm’s length from its search engine brand.
The new arrangement was completed October 2, and the first earnings report under the entirely new structure will come in January.
Alphabet replaced Google Inc as the publicly traded company. All Google shares will automatically be converted one-to-one to Alphabet shares, with Google as a wholly owned subsidiary.
Google’s subsidiaries included Google Maps, YouTube, the Chrome browser and operating system, and Android mobile phones.
Alphabet includes, separately, the health-oriented subsidiaries Calico and Life Sciences, plus Google Ventures, Google Capital, Google X, Google Photos, Google Now and others.