Alphabet beat second-quarter revenue estimates on Tuesday, driven by a rise in digital advertising sales and healthy demand for its cloud computing services.
Its shares were barely changed in after-market trading, after rising more than 30 per cent this year.
Advertising sales, Alphabet’s chief revenue source, rose 11 per cent to $64.6 billion (€59.5 billion). The company sells ads in its search product using customer data to better target them.
Revenue grew 14 per cent to $84.74 billion in the April-to-June period, compared with analysts’ consensus estimate of $84.19 billion according to London Stock Exchange Group data.
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Revenue from cloud computing services, a widely watched barometer for the health of enterprise technology spending, grew 28.8 per cent to $10.35 billion. Analysts had expected $10.16 billion.
Despite heightened regulatory scrutiny, Google had been pursuing its largest acquisition ever, a roughly $23 billion buyout of cybersecurity firm Wiz. But Wiz told employees on Monday it was walking away from the deal and would instead pursue going public.
Google also held talks to acquire customer relationship management firm HubSpot before walking away from it earlier this month. The deal would have turned Alphabet into a rival of Salesforce, Oracle and others in that market.
Sales for the company’s so-called “other bets”, including experimental projects and its self-driving car unit Waymo, rose 28 per cent to $365 million. Ad sales in its YouTube division rose 13 per cent to $8.67 billion. – Reuters
