Alphabet reported results for the second quarter of 2021 after the bell. The stock rose more than 3% on the strong after-hours numbers, beating analysts’ expectations.
Here are the results.
- Earnings per share (EPS): $ 27.26 versus $ 19.34 per share, according to Refinitiv estimates.
- Revenue: Refinitiv estimates $ 61.88 billion versus $ 56.16 billion.
- YouTube advertising revenue: $ 7.00 billion versus an expected $ 6.37 billion according to StreetAccount estimates.
- Google Cloud Revenue: $ 4.63 billion versus an expected $ 4.40 billion according to StreetAccount estimates.
- Traffic Acquisition Costs (TAC): StreetAccount estimates $ 10.93 billion versus $ 9.74 billion expected.
Google’s total advertising revenue surged to $ 50.44 billion, up 69% over the same quarter last year that was impacted by the outbreak of the Covid pandemic.
The retail sector made by far the largest contribution to the company’s ad growth, said Google’s Chief Business Officer Philipp Schindler at the conference call on Tuesday.
YouTube revenue topped $ 7 billion, up 83% year over year, and approaching Netflix’s quarterly revenue, which was $ 7.34 billion.
Schindler said connected TV is “the fastest growing consumer surface we have,” and says the company has over 120 million people every month who watch YouTube on their televisions.
YouTube Shorts, the company’s new TikTok competitor, has just topped 15 billion views per day, CEO Sundar Pichai said on the call. That’s an increase of 6.5 billion daily views in March.
Google Cloud raised $ 4.63 billion, down from $ 3.01 billion a year ago.
The cloud business recorded an operating loss of $ 591 million, a dramatic improvement from a loss of $ 1.43 billion the previous year. Google Cloud includes infrastructure and data analytics platforms, collaboration tools like Google Docs and Sheets, and “other enterprise customer services”.
The company also reported quarterly net income of $ 561 million and earnings per share of $ 0.83 from a change in accounting related to the life of its server and network equipment. This change took effect earlier this year.
Alphabet’s chief financial officer, Ruth Porat, said she expected “a more subdued tailwind for third-quarter revenue.” She said it was too early to predict the longer-term trends in how markets will reopen, especially given the rising Covid case rates.
Pichai started the profit call by encouraging everyone to get the Covid-19 vaccine, while Porat told CNBC that the company’s plans to return to work for September are still on track. Employees will be allowed to “volunteer from home” at least until earlier this month, she added.
CNBC’s Deirdre Bosa contributed to this report.
Correction: In an earlier version of this story, a Google manager’s statement about YouTube viewer numbers on TVs was misplaced and misquoted. The managing director was Phillip Schindler, and he said connected television was the company’s fastest growing “surface”.