- Alphabet announced its second-quarter earnings for 2020, which slightly beat Wall Street expectations.
- But it wasn’t enough to save the company from its first ever revenue cut.
- Clouds was one of the most beautiful places for Google, which was seeing a 43% year-over-year boost.
- Despite the watch, the company’s stock remained steady after hours.
- Visit the Business Insider homepage for more stories.
Google’s second-quarter results lie, revealing a small beat on Wall Street expectations, though it wasn’t enough to save the company from its first drop in revenue since it went public.
Leading company Alphabet reported revenue of $ 31.6 billion (minus traffic acquisition costs) with earnings per share of $ 10.13. That’s down from the $ 31.7 billion reported in Q2 of 2019, but a smaller dip than Wall Street had predicted as the coronavirus crisis causes havoc on the advertising industry. One of the major offenders was the core of Google’s search and advertising, which had fallen 9.8% year-over-year.
Despite the noticeable decline, the company’s stock remained steady following its earnings call, which rose less than 1%.
While chief financial officer Ruth Porat said during the company’s earnings call that she had been “cautiously encouraged” by growth near the end of the quarter, she acknowledged that it was still an uncertain global economic environment. and difficult. ”
YouTube ad revenue also exceeded expectations, bringing in $ 3.81 billion for the quarter, but with a growth rate of just 6% year-over-year, it also marked a deceleration as the advertising spending hit by the pandemic.
Meanwhile, Cloud, a “strong spot” for Google, raked in $ 3.01 billion – up from $ 2.7 billion for the same quarter last year and marked a 43.19% year-over-year increase. While leasing declined across the board, executives said on the company’s call it was still “aggressively leasing in priority areas like Cloud.”
Google’s “other” revenue, which covers things like hardware and Google Play purchases, was $ 5.12 billion for the quarter – 25.6% year-over-year.
As for Alphabet’s other bets – such as Waymo and Verily – the company reported revenue of $ 148 million, year-over-year at about 8%.
Here are the results compared to Bloomberg estimates.
Revenue: $ 31.6 billion (excluding traffic acquisition costs) (estimated $ 30.5 billion)
EPS (GAAP): $ 10.13 (Estimated $ 8.27)
Net income: $ 6.96 billion
Google Cloud revenue: $ 3.01 billion
YouTube ad revenue: $ 3.81 billion
Get the latest Google stock price here.