The report shows that Google Cloud generated $3.4 billion in revenue in Q3, up from $2.4 billion in the same period last year. This is a significant milestone for the cloud division, which has been struggling to catch up to its rivals Amazon Web Services and Microsoft Azure in the highly competitive cloud computing industry.
Google’s cloud business has been heavily investing in expanding its data centers and hiring salespeople to boost its market share. The strategy seems to be paying off, as more and more companies are turning to Google Cloud for their cloud computing needs.
On the other hand, YouTube’s ad revenue has continued to decline for the third quarter in a row. The report shows that ad revenue fell to $5.04 billion in Q3, down from $5.81 billion in the same period last year. The decline in ad revenue has been attributed to the ongoing pandemic, as many businesses have cut back on advertising spending.
Despite the decline in YouTube’s ad revenue, Alphabet’s overall revenue has increased to $65.1 billion in Q3, up from $46.2 billion in the same period last year. The growth was driven by strong performance in Google Cloud and Google’s search and advertising businesses.
The report also revealed that Alphabet’s net income for the quarter was $18.5 billion, up from $11.2 billion in the same period last year. This is a clear indication that the company’s diversification strategy is paying off, as it continues to invest in new businesses and technologies.
Overall, the third-quarter earnings report shows that Google’s cloud business is finally starting to gain momentum, while YouTube’s ad revenue has taken a hit due to the pandemic. However, Alphabet’s overall performance has remained strong, thanks to its diverse portfolio of businesses.
It will be interesting to see how Google’s cloud business continues to perform in the coming months and whether YouTube’s ad revenue will recover as the pandemic subsides. Nevertheless, Alphabet’s Q3 earnings report shows that the company is well-positioned for long-term growth and success.
