What happened

Shares of Alphabet Inc. (NASDAQ:GOOG)(NASDAQ:GOOGL) were up 6.8% as of noon EDT Friday after the parent company of Google announced strong third-quarter 2017 results.

More specifically, Alphabet's quarterly revenue climbed 23.7% year over year to $27.772 billion. That translated to 33% growth in net income to $6.732 billion, and a 32% increase in earnings per diluted share to $9.57. Both the top and bottom lines were well ahead of investors' expectations for earnings of $8.33 per share on revenue of $27.2 billion.

Google headquarters


So what

Alphabet CFO Ruth Porat called it a "terrific quarter," crediting strength in both Google, where advertising revenue climbed 21.4% to $24.065 billion, and the "Other Bets" segment -- comprised of early-stage, high-potential businesses like Fiber, Nest, and Verily -- which saw revenue climb more than 53% to $302 million. 

"Our momentum is a result of investments over many years in fantastic people, products, and partnerships," Porat added.

During the subsequent conference call, she also reminded investors that Google's YouTube now has more than 1.5 billion users who each spend and average of 60 minutes per day on its mobile site. In addition, YouTube now garners more than 100 million hours of watch time in viewers' living rooms each day -- thanks largely to streaming media devices and smart TVs -- up 70% from this time a year ago.

Relatedly, Google also saw non-advertising revenue climb 40% year over year to $3.4 billion, driven by hardware, Play, and cloud products.

Now what

Alphabet doesn't typically provide specific quarterly financial guidance, and this quarter was no different. But given Alphabet's significant outperformance relative to the market's expectations, it's no surprise to see the stock trading at all-time highs right now.