Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), parent company of Google, recently put a date on its third-quarter earnings release. The company will report its results for the quarter on Thursday, Oct. 26, after market close.
Ahead of Alphabet’s third-quarter report, here’s an early look at three areas investors may want to check in on after the update: revenue growth, Alphabet’s “Google other” segment, and its “other bets” segment.
For Alphabet’s third quarter, analysts’ consensus estimateÂ for revenue is $27.2 billion. This compares to revenue of $22.5 billion in the year-ago quarter, representing about a 21% increase.
The analysts’ consensus estimate seems well founded, given that Alphabet’s revenue in its second quarter was similarly up 21% year over year.
Alphabet’s strong revenue growth recently continues to demonstrate the search giant’s ability to consistently grow its business at heady rates. In its second quarter, management said itsÂ solid top line was primarily driven by strong Google advertising revenue growth in mobile search and on YouTube. Alphabet’s Google advertising revenue accounts for 87%Â of Alphabet’s total revenue. The segment revenue was up 18% year over year.
Investors should look for strong advertising growth to similarly help drive Alphabet’s top line in Q3.
Alphabet’s “Google other” segment
Made up primarily of revenue from the Android app store, Google-branded hardware, and cloud services, Alphabet’s “Google other” segment is becoming increasingly important to the company’s results. In Alphabet’s second quarter, other revenue was up 42% year over year. Further, other revenue accounted for a notable 12% of second-quarter revenue, up from 10% in the year-ago quarter.