Alphabet Q2 Earnings Beat Estimates As Advertising Revenue Rises 69%

Alphabet (NASDAQ:GOOGL), the parent company of search engine Google, reported second-quarter earnings that handily beat analysts’ expectations and sent the stock up more than 3% in after-hours trading.

Alphabet’s earnings per share came in at $27.26 U.S. compared to $19.34 U.S. expected by analysts. The company’s revenue totaled $61.88 billion U.S. versus $56.16 billion U.S. forecast by analysts.

Total Google ad revenue increased to $50.44 billion U.S., up 69% from a year earlier when companies cut back their ad budgets due to the pandemic. Alphabet said retail was the largest contributor to the company’s ad growth.

YouTube revenue came in at more than $7 billion U.S, up 83% from last year, and drawing close to Netflix’s quarterly revenue of $7.34 billion U.S.

Google Cloud brought in $4.63 billion U.S., up from $3.01 billion U.S. a year ago.

The cloud business reported operating losses of $591 million U.S., a dramatic improvement from last year’s loss of $1.43 billion U.S. Google Cloud includes infrastructure and data analytics platforms, and collaboration tools such as Google Docs and Sheets.