Google-parent Alphabet Inc's
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The company's shares surged more than 6 percent in after hours trading, before easing to trade up about 3 percent.
Alphabet's consolidated revenue rose to $21.50 billion in the three months ended June 30, from $17.73 billion a year earlier.
Analysts on an average were expecting revenue of $20.76 billion, according to Thomson Reuters I/B/E/S.
Google's ad revenue increased 19.5 percent to $19.14 billion, while it notched an 29 percent rise in paid clicks, where advertisers pay the company only if a user clicks on the ad.
Alphabet, which dominates the mobile ad market along with rival Facebook Inc
Revenue at Alphabet's Other Bets business rose 150 percent to $185 million, while operating losses widened to $859 million.
The division includes broadband business Google Fiber, home automation products Nest, self-driving cars and X – the research facility that works on "moon shot" ventures.
Net income rose to $4.88 billion, or $7.00 per Class A and B common stock, from $3.93 billion, or $4.93 per share.
Excluding items, the company earned $8.42 per share, beating analysts average estimate of $8.04, according to Thomson Reuters I/B/E/S.
(Reporting by Rishika Sadam in Bengaluru; Editing by Savio D'Souza)