Google’s parent company, Alphabet, has reported lower-than-expected Q2 earnings and revenue.
According to the company’s report, revenue generated from Google’s primary advertising division reached $56 billion during the three months that concluded on June 30.
The company reported revenues of $69.7 billion for the quarter, which represents a 13 percent rise from the same period in the previous year. This figure is lower than the $69.9 billion that analysts had expected the company would report.
Wall Street expected a net income for the quarter of $17.3 billion, but the actual amount was only $16 billion. This was a decline of more than 13 percent year-over-year.
According to the firm, Google’s Search and Other revenue were $40.69 billion, which is an increase over the previous year’s figure of $35.85 billion. This increase was driven by an increase in queries related to travel and retail.
The revenue from advertising on YouTube was $7.34 billion, which was lower than the predicted $7.52 billion, while the revenue from Google Cloud was $6.28 billion, which was lower than the expected $6.41 billion.
Alphabet reported that it had 174,014 full-time employees, which is a 21 percent increase over the previous year.
Google has decided to halt all new hires for the next two weeks while it evaluates its staffing requirements and considers its options for the future.
The business decided to reduce the number of new hires for the remainder of the year.
Because it did not meet expectations for revenue, Google Cloud incurred a loss of $858 million during the quarter.
The key figures from the report are listed below:
- Earnings per share (EPS): $1.21 vs $1.28 expected, according to Refinitiv
- Revenue: $69.69 billion vs $69.9 billion expected, according to Refinitiv
- YouTube advertising revenue: $7.34 billion vs. $7.52 billion expected, according to StreetAccount
- Google Cloud revenue: $6.28 billion vs. $6.41 billion expected, according to StreetAccount.
- Traffic acquisition costs (TAC): $12.21 billion vs $12.41 billion expected, according to StreetAccount
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