Alphabet/Google Revenues Beat Expectations

Google’s parent company Alphabet reported that it earned a net income of $18.4 billion on revenues of $74.6 billion in the quarter ending June 30. Those figures represent gains of 14.8 percent and 7 percent, respectively, year-over-year (YOY).

“There’s exciting momentum across our products and the company, which drove strong results this quarter,” Alphabet and Google CEO Sundar Pichai said. “Our continued leadership in AI and our excellence in engineering and innovation are driving the next evolution of Search, and improving all our services. With fifteen products that each serve half a billion people, and six that serve over two billion each, we have so many opportunities to deliver on our mission.”

Google Services is Alphabet’s biggest business, and it delivered $66.3 billion in revenues, $58.1 billion of which came from advertising. And Google Cloud delivered $8 billion in revenues, a gain of 28 percent YOY. Fully 79 percent of Google’s revenues came from advertising.

Google also announced that CFO Ruth Porat will leave that role to assume Alphabet’s president and chief investment officer.

“Our financial results reflect continued resilience in Search, with an acceleration of revenue growth in both Search and YouTube, as well as momentum in Cloud,” she said of the quarter. “We continue investing for growth, while prioritizing our efforts to durably reengineer our cost base company-wide and create capacity to deliver sustainable value for the long term.”