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| Google reports better-than-expected earnings and sales |
Google announced its quarterly results for the third quarter of 2021, with revenue of $65.1 billion and profits for the fifth consecutive quarter of $18.9 billion, a record.
Income grows at 41% annually while profits increase by 69% annually.
YouTube advertising revenue was $7.2 billion. Google's revenue from cloud services was $4.99 billion. Traffic purchase cost $11.50.
The company's advertising revenue grew 43% to $53.13 billion, up from $37.1 billion in the same period last year and slightly higher in the prior quarter. Advertising on YouTube increased from $5.04 billion a year ago to $7.21 billion.
The company appears to have addressed the privacy changes Apple made to iOS 14 earlier this year.
Snap and Facebook both mentioned the change that allowed consumers to opt out of targeted advertising across apps, which was the main reason for business disruptions during that time.
It seems that Google offers more protection than these companies because they have the Android operating system. The company's chief financial officer said the new privacy features will have little impact on YouTube's revenue. She added that privacy concerns are at the heart of everything we do.
Unlike many other tech companies, Google is the biggest beneficiary of the company's reopening as it benefits from travel research and search engine advertising.
Google sets another record quarter during the pandemic
The stock is up 58% this year, more than double the S&P 500 earnings as investors rely on Google's ability to do business and withstand potential regulatory changes as the economy reopens.
Retail is a major contributor to advertising's annual growth. Media and financial expenses are also great.
Cloud division revenue increased 45% to $4.99 billion. Operating losses were reduced from $1.21 billion to $644 million.
The company has invested heavily in this unit, led by former Oracle CEO Thomas Kurian (Thomas Kurian). It's about keeping up with AWS and Microsoft Azure.
Revenue rose from other betting divisions, including Waymo Inc. , from $178 million to $182 million. The loss decreased from $1.1 billion a year ago to $1.29 billion.