Alphabet’s revenue grew by 21.3 percent to $21.5 billion (Rs. 1 lakh cr approx.), while earnings jumped to $4.88 billion (Rs. 32 thousand cr approx.) from $3.93 billion (Rs. 26 thousand cr approx.) for the comparable period a year ago.
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The so-called “Other Bets” segment, made up of Alphabet’s more ambitious business projects, saw revenue increase too. The operating loss on other (Bets) revenues totaled $859 million, up from $660 million in the year ago quarter.
One final note: just so we can say we told you so in a few years time.
Google parent company Alphabet has rebounded from its dismal first quarter, posting better-than-expected Q2 results Thursday after the bell.
During Thursday’s earnings call, Google said cost per click was down 7 percent from past year. Alphabet is reporting $21.5 billion in revenue for the quarter – that’s a 21 percent increase from the same period a year earlier. Its other revenue category, which includes the enterprise cloud business, Google Play store and hardwares sales, reached $2.17 billion, up 33 percent from the second-quarter of 2016.
The company announced a reorganization previous year that left Google as its main operating unit within Alphabet, with several others representing “moonshot” investments in new areas. The Google projects, for the most part, have clear revenue paths; the Alphabet projects require more time and patience.
The R&D costs increased 21 percent to Dollars 3.36 billion, and Google raised investment speding to USD 2.12 billon.
Not to be outdone, social media giant Facebook crushed both earnings and revenue forecasts after the bell Wednesday, pushing shares of Mark Zuckerberg’s company up more than 6% in after-hours trading.
From the Alphabet’s standpoint, the other business it has under its wings, including Google Fiber (broadband), Nest (home automation products), self-driven cars, and X- a research facility, is yet to pick up on a bigger scale.
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But Alphabet’s bread and butter comes from online advertising, where Google dominates the market. The company posted earnings of $7.00 per share, beating our Zacks Consensus Estimate of $6.47. These were partially offset by average ad price, known as “cost per click”, which declined 1% year over year, extending a four-year trend.
