Google tops Q3 targets while reporting first earnings as Alphabet

Mobile search fuels Alphabet's first appearance on the earnings report as six Google products have now racked up more than a billion users worldwide.

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Google published third quarter financial results after the bell on Thursday, marking the first time it has done so under its new corporate umbrella moniker, Alphabet.

The tech giant reported a net income of $3.98 billion, or $5.73 per share (statement).

Non-GAAP earnings were $7.35 per share on a revenue of $18.7 billion, up 13 percent year over year.

Analysts were expecting earnings of $7.21 per share with $18.53 billion in revenue.

Traffic acquisition costs totaled $3.566 billion during the quarter.

Ruth Porat, chief financial officer for both Google and Alphabet, attributed the stronger-than-expected results to mobile search, boasting six Google products now have more than one billion users worldwide.

Total advertising revenue alone accounted for $16.78 billion over the three-month period, while revenue from other Google units contributed $1.894 billion.

In August, Google announced its drastic reorganization and leadership shuffle -- much to the surprise of everyone from Silicon Valley to Wall Street.

The Mountain View, Calif.-headquartered corporation filed plans with the U.S. Securities and Exchange Commission for a new public holding company now known as Alphabet.

Not quite a spinoff, Alphabet has been defined a new parent company, or a "collection of companies," according to a blog post by then-CEO Larry Page, at the time.

Under that plan, Google is a wholly-owned subsidiary of Alphabet, comprised of core businesses such as search, ads, YouTube, Android, Maps and Apps.

Moonshot projects and other innovations such as Calico and Google X have been combined into "Other Bets," as revealed on the third quarter earnings report.

Thus, product chief Sundar Pichai was promoted CEO of Google, replacing Page, who in turn will lead Alphabet as CEO with co-founder Sergey Brin as president. Eric Schmidt will continue on in the office of executive chairman at Alphabet.

Google began trading as Alphabet earlier this month, although its ticker symbols remain the same. However, Google's class A shares and class C shares were set to be converted to an equivalent number of Alphabet class A and class C shares.

Alphabet also noted in the Q3 report that stock buyback program is on the way in the fourth quarter, worth just shy of $5.1 billion in class C shares.

For the current quarter, analysts are forecasting non-GAAP earnings of $8.08 per share with $20.61 billion in revenue.

Charts via Alphabet Investor Relations

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