Alphabet blows past Wall Street's quarterly earnings expectations as search and YouTube ad revenue surge (GOOG, GOOGL)
By: Business Insider
July 27, 2021 at 17:00 PM EDT
Beck Diefenbach/ReutersSummary List Placement
Alphabet blew past Wall Street's second-quarter earnings expectations as the company continued benefit from the massive uptick in digital commerce during the pandemic.
Shares of Alphabet were up around 3% in after-hours trading following its Q2 earnings.
Google's parent company brought in $61.9 billion in total revenue during the quarter, up 62% year-over-year, versus $56.1 billion expected by analysts.
A year after its first-ever revenue decline, Google's ad business skyrocketed in Q2 2021 with $57.1 billion in revenue, up 69% year-over-year, driven largely by Google search ads, which brought in $35.8 billion in revenue.
The company said advertising revenue at its YouTube division rose 84% year-over-year to $7 billion.
Google Cloud earned $4.6 billion in revenue and cut its operating loss to $591 million in Q2, its third-straight quarter of revenue growth since Google started separately reporting the financial performance of its cloud division in Q4 2020.
Here's what Alphabet reported, compared to what analysts expected, according to Bloomberg.
Tuesday marked Google's first earnings report since announcing in March that it would make a major shift away from precisely tracking individual users based on their internet activity, viewed by some experts as a move to entrench its dominance of the digital ads market.
Google's earnings also come as the company faces multiple antitrust lawsuits and likely a tougher regulatory environment under Biden appointees like Federal Trade Commission chair Lina Khan, as well as criticism from employees over its sexual-misconduct policies and dismantling of its AI ethics team following the departure of Timnit Gebru.