- Alphabet reported Thursday that Google Cloud generated $3.4 billion in revenue.
- This represents a 45% increase from the same quarter last year.
- Its growth also accelerated slightly, as last quarter Google Cloud saw a slight slowdown in growth, with a 43% year-over-year increase, versus 52% growth the quarter before.
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Google Cloud’s growth showed slight acceleration again, as parent-company Alphabet reported cloud revenue of $3.4 billion in the third quarter, a 45% increase year-over-year. Last quarter, the unit reported only 43% growth from the previous year, which had been down from 52% growth in Q1.
Alphabet’s stock surged about 8% after hours on Thursday, reporting total revenue of $46.2 billion. Google CFO Ruth Porat said that growth was driven by “continued strength in Google Cloud,” in addition to increase in advertiser spend on Search and YouTube, as well as growth in Google Play.
“We remain focused on making the right investments to support long term sustainable value,” Porat said in a statement.
While Google Cloud has lagged behind rivals Amazon Web Services and Microsoft in attracting large business customers, it’s been investing in various strategies, such as making its cloud easier to use with multiple clouds, building solutions for specific industries like retail, being flexible in customer negotiations, and beefing up its leadership team.
It's also been working on building and developing partnerships – something that's been key to Microsoft's success. Google Cloud has said it aims to have partners involved in 100% of its new deals.
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