On Tuesday, Google parent Alphabet Inc. released its performance and revenue statement for the second quarter that closed on 30th June. And it will be safe to say that it has outperformed itself in Q2, with revenues hitting $61.9 billion. The net income, after adjusting for the losses, came out to be $18.5 billion, while earning per share stood at $27.26.
The top-line growth noted was much greater than expected (the Wall Street saying that top-line would only rake in some $56 billion, and shares would be valued at $19.14), and came in at 62%, with net income growing by a whopping 166%. At the same time however, Alphabet saw its shares rise by a measly single percentage point, akin to what happened at contemporary Microsoft when it released its own performance report.
Google’s video service YouTube was among the front-runners in terms of revenue gains, and raked in a total of $7 billion, a rise of 84% as compared to last year. A huge chunk of this can be attributed to the platform’s solid ad service, and the rather-new YouTube Shorts, too, which is doing its job of attracting more people. A statement by the company says that the offering has already crossed 15 billion global daily views.
Another winner was Google Cloud, which, at earnings of $4.6 billion, saw an uphill movement of 54% year-on-year. At the same time, the brand also cut its costs significantly during this year’s Q2, as compared to 2020, going down from $1.4 billion to a bare $591 million.
But Google is not the only subsidiary that Alphabet has to offer, and Other Bets (which includes the likes of Waymo and Calico, among others) too, saw a revenue of $192 million, which is up $44 million from a year ago. At the same time, the company remained in loss, and lost out a whopping $1.4 billion, which is up $300 million than last year. And that’s not all, as all other offerings that are not a part of the Google banner too, incurred higher losses this year (at nearly a billion dollars) as compared to 2020 (which stood at $614 million).
At the same time, the tech giant also noted a mind-boggling growth in terms of operating income, which rose to over $19.3 billion as compared to last year’s value, which stood at nearly $683 million.
What do the bosses have to say about this growth, you ask? Sundar Pichai, CEO at both Google and Alphabet, said, “In Q2, there was a rising tide of online activity in many parts of the world, and we’re proud that our services helped so many consumers and businesses. Our long-term investments in AI and Google Cloud are helping us drive significant improvements in everyone’s digital experience.”
Meanwhile, Ruth Porat, the Chief Financial Officer at both the parent firm and the subsidiary tech giant, added, “Our strong second quarter revenues of $61.9 billion reflect elevated consumer online activity and broad-based strength in advertiser spend. Again, we benefited from excellent execution across the board by our teams.”
