Google’s ad business, the genesis of its scrutiny at this week’s Congress hearing, showed signs of stabilizing as its parent company went on to report $38.8 billion in revenues this quarter.
Alphabet Inc. managed to extract $38.297 billion from the market, down just 2% from the same time last year, when the revenue was $38.944 billion. Ruth Porat, Chief Financial Officer of Google claims that the balance sheet was driven by “gradual improvement in the company’s ads business and strong growth in Google Cloud and Other Revenues”, as the company navigates through a difficult global economic environment.
Out of this, Google Search (and others) made up for 55.6% of the total pie, bringing in $21.319 billion, while the sister platform Youtube also reeled in $3.812 billion in ad revenue. The cloud business accounted for about $3 billion, while Google’s ‘other’ business, which includes hardware, Play Store, and non-advertising YouTube revenues- reported $5.12 billion.
Net income stood at $6.96 billion, up from $6.84 billion last quarter. Operating income was $6.383 billion, with an operating margin of 17%. However, compared to an year ago, when the operating income was a staggering $9.2 billion, with an operating margin of 24%, the company’s accounts fall flat. Even the net income took a dive of about $3 billion, which was at $9. 947 billion same time last year.
The company also mentioned, “On July 27, 2020, the Board of Directors of Alphabet authorized the company to repurchase up to an additional $28.0 billion of its Class C capital stock. The repurchases are expected to be executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans.”
The company’s CEO Sundar Pichai says that Google is working to help people, businesses and communities in these uncertain times, adding that the company’s platforms, from Cloud to Google Play to YouTube — are helping our partners provide important services and support their businesses.
As usual, Google will hold its earnings call with investors via a live audio webcast which can be seen at their YouTube channel.