Alphabet (NASDAQ: GOOGL) announced its 2020 Q3 earnings results on October 29th, 2020. In 2020 Q2, net income increased thanks to steadily streamlining their business despite of decrease in advertising revenue. In 2020 Q3, revenues, operating income, and net income increased 14%, 22%, and 59%, respectively, thanks to a solid recovery in the advertising revenue.
In Alphabet’s business, Google search-related revenue accounts for the largest percentage of total revenues. In this regard, Google search-related revenue increased 6.5%, showing single-digit growth. On the other hand, YouTube ads revenue increased 32%, showing extremely high growth, although Youtube ads revenue accounts for only 10.9% of total revenues. When reviewing growth of revenues depending on regions, growth of Asia Pacific (APAC) revenue recorded the highest growth of +24%.
We believe that Alphabet’s strategy of steadily streamlining their business at the time of economic recession followed by drastic growth in their profit brought by the recovery of the total revenues must have been successful. We continuously expect the growth of Alphabet’s business.
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