Alphabet second quarter earning beat expectations; reported revenue of $38.94 billion with triple profit
Alphabet continues its online dominance with a monster second quarter earning. The parent company of Google revenue beats expectations as the company reported a revenue $38.94 billion dollar in second quarter. The revenue is boosted by its booming cloud business and ad-revenue. For its strong quarter, the tech giant its repurchasing $25 billion share.
As part of the report, Google CEO Sundar Pichai said the company’s cloud unit reached $8 billion in annual revenue and plans to triple its sales force over the next few years. The company made the announcement as part of its quarterly report. Even with the growth, Google is still trailing behind the leader in cloud infrastructure, Amazon Web Services. Amazon reported 37% growth on Thursday to $8.38 billion, which makes it about quadruple the size of Google’s business.
Google’s ad sales for the second quarter totaled $32.6 billion, an increase of 16% over last year and slightly ahead of consensus expectations for $32.58 billion.
“Our effort to build a more helpful Google for everyone brings countless opportunities to help users, partners, and enterprise customers every day,” said Sundar Pichai, Chief Executive Officer of Google. “From improvements in core information products such as Search, Maps, and the Google Assistant, to new breakthroughs in AI and our growing Cloud and Hardware offerings, I’m incredibly excited by the momentum across Google’s businesses and the innovation
that is fueling our growth,” the company said.
“With revenues of $38.9 billion, up 19% versus the second quarter of 2018 and up 22% on a constant currency basis, we’re delivering strong growth,” said Ruth Porat, Chief Financial Officer of Alphabet and Google. “Our ongoing investments in compute capabilities and engineering talent reflect the compelling opportunities we see across the company.”
Here are the key numbers:
- Earnings per share: $14.21 per share, ex-items, vs. $11.30 per share expected, per Refinitiv survey of analysts
- Revenue: $38.94 billion, vs. $38.15 billion expected, per Refinitiv
- Traffic acquisition costs: $7.24 billion, vs. $7.27 billion, according to StreetAccount
- Paid clicks on Google properties from Q2 2018 to Q2 2019: +28%
- Cost-per-click on Google properties from Q2 2018 to Q2 2019: -11%