Q2 Earnings Surprise Recorded... Balanced Growth Across All Sectors
Advertising Revenue Increased by 69% Compared to One Year Ago
[Asia Economy Reporter Yujin Cho] Alphabet, Google's parent company, posted earnings that surpassed expectations in the second quarter of this year, benefiting from the economic reopening following COVID-19.
On the 27th (local time), Alphabet announced in its Q2 earnings report that revenue increased by 62% year-over-year to $61.88 billion. This significantly exceeded Wall Street's forecast of $56.16 billion.
During the same period, operating income rose 31% to $19.361 billion, and net income nearly tripled (166%) to $18.525 billion.
Earnings per share reached $27.26, far surpassing the market expectation of $19.34.
The Wall Street Journal (WSJ) reported that the surge in online advertising demand for Google Search, Google Maps, and YouTube, driven by companies preparing for the post-COVID-19 economic reopening, led to the highest-ever Q2 revenue growth.
Google's advertising revenue was $50.44 billion, a 69% increase compared to $29.87 billion in the same quarter last year, which was impacted by the COVID-19 crisis.
YouTube, operated by Google, generated revenue of $7 billion, approximately double (84% increase) compared to $3.81 billion in the same quarter last year. The market had expected YouTube's Q2 revenue to be around $6.37 billion.
Philip Schindler, Google's Chief Business Officer (CBO), stated during the earnings announcement, "The increase in advertising revenue significantly contributed to the overall growth in performance."
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