Google parent Alphabet announced second-quarter results. Both revenues and earnings per share beat Wall Street consensus estimates. However, the recent EU antitrust fine of $2.7 billion took a toll on net income and earnings per share.
The company reported just over $26 billion in total revenues (up 21 percent), with Google contributing all but $248 million of that amount. Advertising on Google generated $22.7 billion in revenue. Once again mobile search and YouTube were the big contributors to growth.
Google reported that it has just over 75,600 employees at the end of the quarter. New hires were “mostly engineers and product managers.”
Here’s the revenue breakdown by segment:
- Google properties: $18.4 billion
- Google network: $4.2 billion
- Google “other revenues”: $3.1 billion
- Other bets: $248 million
Paid clicks on Google properties were up a whopping 61 percent year-over-year and 15 percent sequentially. However, aggregate cost-per-click was down 23 percent since last year and 6 percent since the previous quarter.
Despite the revenue growth, Alphabet shares are down in after-hours trading. We’ll update this post with highlights from the earnings call, which is in progress.
Highlights from the earnings call:
Google CEO Sundar Pichai discussed how machine learning and AI are influencing all of Google’s products, including ad-related and analytics products.
YouTube now has 1.5 billion monthly viewers, with 60 minutes per day being watched on mobile devices. However the Fastest growing screen is living room. Google and YouTube are rolling out new ad-supported original programming.
Google cloud platform continues to experience significant growth.
Google Home now available in four (English speaking) countries, with a launch in France next month.
There are now more than 2 billion active Android devices around the world; 82 billion apps were downloaded from Google Play last year.
YouTube advertisers are having “great success with 6 second bumper [ads].”
