YouTube Q2 Ad Revenue Growth Slows, Google’s Search Sales Fall Nearly 10%
- by Nick Cohen
- in Industry
- — Aug 1, 2020
Cloud revenue was US$3 billion, up 43 per cent from the same quarter previous year, the Mountain View, California-based company said in a statement Thursday. YouTube ad revenue growth decelerated as well, though it beat expectations with $3.81 billion in revenue for the quarter.
Cloud revenue was $3 billion, up 43% from the same quarter previous year, the Mountain View, California-based company said in a statement.
Alphabet's profit was almost US$7 billion, or US$10.13 per share, above analysts' average estimate of US$5.6 billion, or US$8.29 per share, for the quarter.
The total revenue for the quarter was $38.3 billion, whereas the expected revenue was $37.4 billion.
The annual revenue run rate for Google Cloud - the third largest cloud computing provider behind No. 1 Amazon Web Services and No. 2 Microsoft Azure - is now approximately $12.03 billion after exceeding $11.08 billion in the first quarter.
"As people increasingly turn to online services, our platforms - from Cloud to Google Play to YouTube - are helping our partners provide important services and support their businesses", Pichai said. Porat said the company would "reimagine" what their future workspaces would look like while most employees continue to work remotely.
"This quarter, we saw the early signs of stabilisation, as users returned to commercial activity online", Alphabet's chief executive Sundar Pichai told analysts. "And we are helping many government agencies deliver care for their citizens, including the states of Oklahoma and NY here in the USA, and Italy and Spain in Europe". Ad sales improved near the end of the quarter.
Total Google advertising revenue fell to $29.86 billion in the second quarter, from $32.49 billion past year. Alphabet's shares have gained about 15% this year.
"What we're looking at is really how to reimagine what the workplace will look like", Porat said. "We still expect that headcount additions will be seasonally higher in Q3, as we bring on new graduates".
Google is also facing antitrust probes along the same lines by the Department of Justice and 50 attorneys general investigating Google company's search and Android businesses. Overall, there's a very fast pace of innovation, so it's dynamic and competitive.
Google shares were little changed in after-market trading following the release.
