Alphabet dips 5% as Q3 revenues, profits miss forecast
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Alphabet stock is falling - (NASDAQ:GOOG) -5.2%, (NASDAQ:GOOGL) -5.3% - after its third-quarter results missed expectations on top and bottom lines as the company joined other techs in experiencing a currency challenge.
Revenues grew 6% to $69.09B, short of an expected $70.7B (or 8.5% year-over-year growth). That revenue would have grown 11% in constant currency, Chief Financial Officer Ruth Porat noted.
Operating income and margins fell as well, to $17.14B from $21.03B, and to 25% from 32% respectively.
And net income fell to $13.9B from a year-ago $18.94B.
The results "reflect healthy fundamental growth in Search and momentum in Cloud" while showing the FX impact, Porat said. "We're working to realign resources to fuel our highest growth priorities." Once again, though, YouTube presented a challenge to results.
Revenues by segment: Google Search and other, $39.54B (up 4.3%); YouTube ads, $7.07B (down 1.9%); Google Network, $7.87B (down 1.6%); Google other, $6.9B (up 2.1%); Google Cloud, $6.9B (up 37.6%); Other Bets, $209M (up 14.8%). The company also logged $638M in hedging gains vs. a year-ago $62M.
Traffic acquisition costs rose slightly, to $11.83B from $11.5B.
And headcount jumped to 186,779 employees from a year-ago 150,028.
Conference call to come at 5 p.m. ET.
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