Google parent company letter report Second quarter results After the bell on Tuesday, the company’s revenue and profit were in line with analysts’ expectations, but missed estimates for YouTube ad revenue. Alphabet shares rose about 2% after the report was released.
Here’s how the company performed, compared with estimates from analysts surveyed by London Stock Exchange Group (LSEG):
income: $1.89 per share, expected $1.84 per share
income: $84.74 billion vs. $84.19 billion expected
Here are other numbers Wall Street is watching:
- YouTube ad revenue: $8.66 billion to $8.93 billion, according to StreetAccount
- Google Cloud revenue: $10.35 billion vs.. $10.2 billion, according to StreetAccount
- Traffic Acquisition Cost (TAC): $13.39 billion vs. $13.54 billion, according to StreetAccount
Driven by its search and cloud businesses, Alphabet’s revenue increased by 14% year-on-year, with quarterly revenue exceeding US$10 billion for the first time and operating profit exceeding US$1 billion for the first time.
The company reported $64.62 billion in ad revenue, up from $58.14 billion last year, a sign that Google’s ad business continues to grow after rising inflation and interest rates tighten marketing budgets in 2022 and 2023, albeit at a slower pace than first Quarterly slowdown.
Although YouTube advertising revenue fell short of expectations, it still grew to $8.66 billion from $7.66 billion in the same period last year. Although this is The world’s largest video platformit faces increasing competition from social video sites such as TikTok.
Net profit rose to $23.6 billion, or $1.89 per share, compared with $18.4 billion, or $1.44 per share, in the same period last year.
The company’s “Other Bets” unit, which includes its self-driving car unit Waymo, brought in $365 million, up from $285 million a year ago. In the second quarter, Alphabet made a number of expansion updates, including its self-driving car unit Waymo. Open It serves all San Francisco users. The move is Waymo’s second citywide rollout, following its debut in the Phoenix metropolitan area in 2020.
During an earnings call with investors, Chief Executive Sundar Pichai said Waymo currently provides 50,000 paid public rides per week, primarily in San Francisco and Phoenix.
“Our strong performance this quarter underscores continued strength in search and momentum in cloud,” Pichai said in the earnings report. “We innovate at every layer of the AI ​​stack. Our long-term commitment to infrastructure Our leadership position and in-house research team position us well as technology evolves and we pursue the many opportunities ahead.”
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