Alphabet (GOOGL, GOOG) is set to report Q3 earnings tonight after the close with a conference call to follow at 4:30pm ET. GOOGL reports results on its website shortly after the opening bell. 

Current Capital IQ consensus stands at EPS of $8.40 on Revenue of $27.16 bln. 

There has been plenty of concern that the FAANG names have run the course and the group will be under immense pressure to continue to post strong quarters.

Key Metrics

  • Revenue Growth- Five straight quarters of 20%+ revenue growth but comps are getting tougher. 
  • Operating Margins- Came in at 16% last quarter but that also included $2.74 bln fine from the EU regarding display and ranking of shopping search results.
  • Aggregate Clicks Paid- Q2 came in at 52%; Q1 +44%; Q4 +36%, Q3 +33%; Q2 +29%. 
    • Paid Click on Google Properties +61% 
    • Paid Clicks on Google Network Member +9% 
  • Aggregate cost per click- Q2 saw a decline of -23%; Q1 -19%; Q4 -15%, Q3 -11%; Q2 -7%,
    • CPC on Google Properties -26%
    • CPC on Google Network Members properties -11%
  • TAC- Increased 28% y/y in Q3, the highest increase in nine years.

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