Alphabet CEO Sundar Pichai gestures during a session at the World Economic Forum annual meeting in Davos.
Fabrice Coffrini | AFP | fake pictures
Alphabet, Google’s parent company, beat expectations for its second-quarter earnings on Thursday, marking its first decline in revenue in the company’s history. The company’s shares barely budged after hours.
Here’s how he did it against Refinitiv’s consensus estimates:
- EPS: $ 10.13 (not GAAP), compared to an estimated $ 8.21.
- Income: $ 38.30 billion vs. estimated $ 37.37 billion.
- YouTube advertising revenue: $ 3.81 billion vs. $ 3.78 billion, according to StreetAccount estimates
- Google Cloud revenue: $ 3.01 billion vs. $ 3.06 billion, according to StreetAccount
- Traffic acquisition costs (TAC): $ 6.69 billion vs. $ 6.67 billion, according to StreetAccount
The company’s board of directors also authorized the company to repurchase up to $ 28 billion of its Class C shares.
As a result of customer pullbacks amid the Covid-19 pandemic and the ad market in general, Alphabet cut marketing spending in half and instituted hiring freezes for the second half of the year in anticipation of a slowdown, CNBC reported. Around that time, Alphabet CEO Sundar Pichai said Google would withdraw some of its investments for the rest of the year amid the Covid-19 crisis, starting with hiring.
Revenue from “Other Bets,” which includes Alphabet Waymo’s driverless car business as well as life science company Verily, fell to $ 148 million compared to $ 162 million in the same quarter a year ago. The other bets showed an operating loss of $ 1.11 billion during the quarter.
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