watch
now
Google
parent
company
Alphabet
reported
second-quarter
results
after
the
bell
Tuesday
that
were
in-line
with
analyst
estimates
on
revenue
and
earnings,
but
missed
on
YouTube
advertising
revenue.
Alphabet
shares
were
down
about
2%
in
after-hours
trading.
Here’s
how
the
company
did,
compared
with
estimates
from
analysts
polled
by
LSEG:
Earnings:
$1.89
a
share
vs.
$1.84
per
share
expected
Revenue:
$84.74
billion
vs.
$84.19
billion
expected
Here
are
other
numbers
Wall
Street
was
watching:
-
YouTube
advertising
revenue:
$8.66
billion
vs.
$8.93
billion,
according
to
StreetAccount -
Google
Cloud
revenue: $10.35
billion
vs.
$10.20
billion,
according
to
StreetAccount -
Traffic
acquisition
costs
(TAC):
$13.39
billion
vs.
$13.54
billion,
according
to
StreetAccount
Alphabet’s
revenue
was
up
14%
year
over
year,
driven
by
search
as
well
as
cloud,
which
surpassed
$10
billion
in
quarterly
revenues
and
$1
billion
in
operating
profit
for
the
first
time.
The
company
reported
ad
revenue
of
$64.62
billion
—
up
from
$58.14
billion
last
year,
showing
that
Google’s
advertising
business
continues
to
grow,
though
at
a
slower
pace
than
in
the
first
quarter,
after
rising
inflation
and
interest
rates
tightened
marketing
budgets
in
2022
and
2023.
While
YouTube
ad
revenue
missed
estimates,
it
still
grew
to
$8.66
billion
compared
to
$7.66
billion
in
the
year-ago
quarter.
Though
it’s
the
largest
video
platform
in
the
world,
it
faces
increased
competition
from
social
video
sites
like
TikTok.
Net
income
increased
to
$23.6
billion,
or
$1.89
per
share,
compared
to
$18.4
billion,
or
$1.44
per
share,
in
the
year-ago
quarter.
The
company’s
“Other
Bets”
unit,
which
includes
its
self-driving
car
company
Waymo,
brought
in
$365
million,
up
from
$285
million
a
year
ago.
Finance
chief
Ruth
Porat
announced
on
the
company’s
earnings
call
that
Alphabet
is
committing
a
new
$5
billion
multiyear
investment
in
Waymo.
During
the
second
quarter,
Alphabet
saw
a
number
of
expansion
updates,
including
for
Waymo,
which opened its
service
to
all
San
Francisco
users.
The
move
was
its
second
citywide
rollout,
following
a
2020
debut
in
the
Phoenix
metropolitan
area.
CEO
Sundar
Pichai
said
on
the
earnings
call
that
Waymo
is
now
making
50,000
weekly
paid
public
rides,
primarily
in
San
Francisco
and
Phoenix.
“Our
strong
performance
this
quarter
highlights
ongoing
strength
in
Search
and
momentum
in
Cloud,”
Pichai
said
in
the
earnings
release.
“We
are
innovating
at
every
layer
of
the
AI
stack.
Our
longstanding
infrastructure
leadership
and
in-house
research
teams
position
us
well
as
technology
evolves
and
as
we
pursue
the
many
opportunities
ahead.”
