Skip to content
Subscriber Only

Alphabet Revenue Misses Estimates While Payouts to Partners Rise

  • Google’s cost-per-click falls 28% even as paid clicks jump
  • Fees to partners distributing Search were 23% of ad revenue
Bloomberg business news
Alphabet Will Be Successful for a 'Number of Quarters,' CFRA's Kessler Says
Updated on

Google parent Alphabet Inc. is paying more to partners that distribute its search engine, while charging less for each ad that it runs -- a combination that’s putting a damper on growth.

Third-quarter sales, minus partner fees, were $27.2 billion, the internet giant said Thursday in a statement. Analysts on average were expecting $27.3 billion, according to data compiled by Bloomberg. Sales from Google’s own properties, including YouTube and search pages, rose 22 percent, slower than the 26 percent growth in the prior quarter. The company’s shares slid in extended trading.