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Alphabet (GOOGL) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

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Alphabet (GOOGL - Free Report) reported $64.05 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 11.9%. EPS of $1.55 for the same period compares to $1.06 a year ago.

The reported revenue represents a surprise of +1.45% over the Zacks Consensus Estimate of $63.13 billion. With the consensus EPS estimate being $1.45, the EPS surprise was +6.90%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Alphabet performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Total traffic acquisition costs: $12.64 billion versus $12.62 billion estimated by 12 analysts on average.
  • Headcount: 182,381 compared to the 185,733 average estimate based on four analysts.
  • Revenue- EMEA (Europe, Middle East, and Africa): $22.66 billion versus the three-analyst average estimate of $22.63 billion. The reported number represents a year-over-year change of +16.5%.
  • Revenue- US- Total: $36.35 billion compared to the $35.50 billion average estimate based on three analysts. The reported number represents a change of +8.9% year over year.
  • Revenue- Other Americas (Canada and Latin America): $4.55 billion versus the three-analyst average estimate of $4.60 billion. The reported number represents a year-over-year change of +10%.
  • Revenue- APAC (Asia-Pacific): $13.13 billion versus the three-analyst average estimate of $13.24 billion. The reported number represents a year-over-year change of +14.2%.
  • Revenue- Google properties: $51.98 billion versus $50.99 billion estimated by 11 analysts on average. Compared to the year-ago quarter, this number represents a +11.5% change.
  • Revenue- Google Cloud: $8.41 billion versus the 10-analyst average estimate of $8.54 billion. The reported number represents a year-over-year change of +22.5%.
  • Revenue- YouTube ads: $7.95 billion versus the 10-analyst average estimate of $7.84 billion. The reported number represents a year-over-year change of +12.5%.
  • Revenue- Google Advertising- Total: $59.65 billion compared to the $58.94 billion average estimate based on 10 analysts. The reported number represents a change of +9.5% year over year.
  • Revenue- Google Search & other: $44.03 billion compared to the $43.04 billion average estimate based on 10 analysts. The reported number represents a change of +11.4% year over year.
  • Revenue- Google Network: $7.67 billion versus $7.93 billion estimated by 10 analysts on average. Compared to the year-ago quarter, this number represents a -2.6% change.
View all Key Company Metrics for Alphabet here>>>

Shares of Alphabet have returned +4.1% over the past month versus the Zacks S&P 500 composite's -2.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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