Google reports revenue of $69.09 bn in Sept quarter

Google parent Alphabet Inc reported revenue of $69.09 billion in the quarter ended Sept. 30, compared with $65.12 billion a year earlier.
Alphabet and Google CEO Sundar PichaiAlphabet’s net income fell to $13.91 billion, or $1.06 per share, from $18.94 billion, or $1.40 per share, a year earlier.

The company’s operating margin declined to 25 percent in the third quarter, from 32 percent in the prior year.

Google’s advertising revenue was $54.48 billion in the third quarter, compared with $53.13 billion last year.

Ad sales on streaming video site YouTube declined to $7.07 billion, from $7.2 billion in the prior-year quarter.

Revenue from Google Cloud rose to $6.9 billion during the quarter, from $5 billion a year earlier.

Alphabet called out slowing spending by advertisers on YouTube, said financial services spending was cooling on Google, and plans to cut hiring by more than half.

Google is the world’s largest digital advertising platform by market share.

Last week, smaller rival Snap reported slowest-ever revenue growth rate.

Ruth Porat, Alphabet’s chief financial officer, said the deceleration in overall advertising revenue was due to last quarter’s very strong performance, adding that lower ad sales on YouTube were due to some advertisers pulling back on their ad spending.

Companies that slowed ad spending included those in financial services such as insurance, mortgages and cryptocurrencies, Alphabet said. Travel and retail advertisers helped Google Search ad revenue.

The tech giant said in July it would slow the pace of hiring for the rest of the year, saying it was not immune to economic headwinds. Porat said the company hired 12,700 people in the third quarter and expects to hire less than half that number in the final quarter.

During a conference call with analysts, Alphabet CEO Sundar Pichai said the company would continue to evaluate its projects and make course corrections as needed.