Google’s parent company Alphabet has released its Q3 reports, with the company reporting its slowest revenue growth in almost a decade.
The company’s shares dropped more than 5% in extended trading on Tuesday after the company reported weaker-than-expected earnings and revenue for the third quarter.
Alphabet reported revenue of $69,092 for the three months ending in September, missing expectations and marking the company’s slowest annual revenue growth since 2013.
Revenue growth slowed to 6% from 41% a year earlier as the company contends with a continued downdraft in online ad spending.
Net income of $13,910 and earnings per share of $1.06 also missed the Wall Street expectations, with analysts predicting EPS of $1.25.
YouTube ad revenue slid about 2% to $7.07 billion from $7.21 billion a year ago. Analysts were expecting an increase of about 3%. Alphabet reported overall advertising revenue of $54.48 billion during the quarter, up slightly from the prior year.
Sundar Pichai, CEO of Alphabet and Google, said in a statement: “We’re sharpening our focus on a clear set of product and business priorities.”
Ruth Porat, the finance chief, said “we’re working to realign resources to fuel our highest growth priorities.”