Alphabet Inc. (GOOG,GOOGL), the parent company of Google, Tuesday reported its second-quarter results, with both profit and revenues trumping Wall Street estimates, reflecting increased ad spending and cloud revenues.
Alphabet reported second-quarter profit of $18.53 billion or $27.26 per share, a huge surge from last year’s profit of $6.96 billion or $10.13 per share. On average, 28 analysts polled by Thomson Reuters estimated earnings of $19.14 per share for the quarter. Analysts’ estimates typically exclude one-time items.
Revenues for the quarter surged 62 percent to $61.88 billion from $38.29 billion last year. Analysts had a consensus revenue estimate of $56.03 billion for the quarter.
Google advertising revenues rose to $50.44 billion from $29.87 billion last year, as YouTube ad revenues nearly doubled and Google Search revenues also increased. Google cloud revenues rose to $4.63 billion from $3.01 billion last year.
Commenting on the results, CEO Sundar Pichai said, “In Q2, there was a rising tide of online activity in many parts of the world, and we’re proud that our services helped so many consumers and businesses. Our long-term investments in AI and Google Cloud are helping us drive significant improvements in everyone’s digital experience.”
Ruth Porat, CFO of Google and Alphabet, said: “Our strong second quarter revenues of $61.9 billion reflect elevated consumer online activity and broad-based strength in advertiser spend. Again, we benefited from excellent execution across the board by our teams.”
The tech company seems to have benefited from the lockdowns and other restrictions caused by the pandemic, as more and more people are using its services to search, read news and shop. Advertising spending has also rebounded as COVID had slowed down marketing spending.
GOOG closed Tuesday’s trading at $2,735.93, down $56.96 or 2.04%, on the Nasdaq. The stock, however, gained $38.58 or 1.41%, in the after-hours trade.
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