Google parent Alphabet Inc’s (GOOGL.O) quarterly revenue and profit surged to record highs, the company reported on Tuesday, powered by a rise in advertising spending as more consumers shopped online.
Revenue from Google advertising rose nearly 70 per cent to $50.44 billion during the second quarter ended June 30.
Total revenue for Alphabet rose 61.6 per cent to $61.88 billion, well above Wall Street estimates of $56.16 billion, according to IBES data from Refinitiv.
Quarterly profit was $18.5 billion or $27.26 per share, beating expectations of $19.34 per share.
With consumers spending more time online during the coronavirus pandemic, retailers have been pushing to reach them there, whether they’re shopping for products using Google search or watching videos on YouTube. The nascent US economic rebound that’s accompanied the vaccine rollout and the easing of restrictions is also helping as consumers are enjoying increased mobility and options for purchases of all kinds.
Retail brands were the biggest contributor to the ads business’ growth, said Philipp Schindler, Google’s chief business officer, during a call with analysts. The travel, financial services and media and entertainment sectors were also strong, he added.
Ad revenue for the company’s streaming video platform YouTube jumped 83.7 per cent from the year-ago quarter to $7 billion – nearly as much as Netflix generated in quarterly revenue.
The strong results coincide with Alphabet facing four antitrust lawsuits brought by U.S. federal regulators or states, which threaten to force major changes across its business including advertising and smart-home gadgets. read more
Most recently, 37 US state and district attorneys general alleged earlier this month that Google “unlawfully” maintained a monopoly for its app store on Android phones. The lawsuits are expected to take years to resolve. read more