Google parent Alphabet's business growth is fastest in a year-plus on ad boost

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Jon Swartz is a senior reporter for MarketWatch in San Francisco, covering many of the biggest players in tech, including Netflix, Facebook and Google. Jon has covered technology for more than 20 years, and previously worked for Barron's and USA Today. Follow him on Twitter @jswartz.

Alphabet Inc.’s business expanded faster than it has in more than a year after Google’s parent company reported a rebound in advertising that pushed quarterly revenue up 11% year-over-year.

Alphabet GOOGL, +1.69% GOOG, +1.61% reported fiscal third-quarter net earnings of $19.7 billion, or $1.55 a share, compared with net earnings of $13.9 billion, or $1.06 a share, in the year-ago quarter. Despite the better-than-expected results, Google’s stock initially dropped nearly 6% in extended trading Tuesday before briefly rallying.

During a conference call with analysts late Tuesday, Porat said cloud growth “remained strong across geographies, industries and products,” but its rate of expansion “reflects the impact of customer optimization efforts,” a phrase that generally refers to clients cutting back on spending. Google’s total advertising sales climbed to $59.65 billion from $54.5 billion a year ago, but edged analysts’ average expectations of $59.2 billion. Google Cloud brought in $8.4 billion, compared with $6.9 billion last year. YouTube ad sales rose to $7.95 billion from $7.07 billion a year ago.

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