Alphabet (GOOGL) reported third-quarter results that exceeded Wall Street’s expectations as the technology giant saw increase in its search business revenue and advertising.

• Earnings per share (EPS):  $27.99 per share vs $23.48 per share, according to Refinitiv estimates.
• Revenue:  $65.12 billion vs. $63.34 billion, according to Refinitiv estimates.
• YouTube advertising revenue:  $7.20 billion  vs. $7.4 billion expected.
• Google Cloud revenue:  $4.99 billion vs. $5.07 billion expected.
• Traffic acquisition costs (TAC):  $11.50 vs.  $11.16 billion expected.

Google’s advertising revenue rose 43% to $53.13 billion, up from $37.1 billion the same time last year and slightly higher than the prior quarter. YouTube ads rose to $7.21 billion, up from $5.04 billion a year ago.

• Revenues rose a healthy 41% to $65.12 billion, nearly $2 billion better than expected. In constant currency, the figure rose 39%. Total traffic acquisition costs rose to $11.5 billion from $8.17 billion.
• Operating income jumped to $21 billion from a year-ago $11.2 billion for the third quarter, and operating margin rose to 32% from 24%.
• That led to net income that soared 68% to $18.94 billion.
• “Five years ago, I laid out our vision to become an AI-first company,” CEO Sundar Pichai noted. “This quarter’s results show how our investments there are enabling us to build more helpful products for people and our partners. Ongoing improvements to Search, and the new Pixel 6, are great examples.”
• Revenue by segment: Google search and other, $37.93 billion (up 44%); YouTube ads, $7.2 billion (up 43%); Google Network, $8 billion (up 39.8%); Google other, $6.75 billion (up 23.2%); Google Cloud, $4.99 billion (up 44.9%); Other Bets, $182 million (up 2.2%).
• Operating income by segment: Google Services, $23.97 billion (up 65.9%); Google Cloud, -$644 million (vs. year-ago -$1.2 billion); Other Bets, -$1.29 billion (vs. year-ago -$1.1 billion).

“GOOGL has significant first party data across its various properties, including strong user intent in Search and to a lesser degree in YouTube,” said JPMorgan analyst Doug Anmuth in a note ahead of Alphabet’s third-quarter results. ”