Alphabet meets earnings expectations but misses on YouTube ad revenue
Google parent company Alphabet reported second-quarter results after the bell Tuesday that were in-line with analyst estimates on revenue and earnings, but missed on YouTube advertising revenue.
Alphabet shares were down about 2% in after-hours trading.
Here's how the company did, compared with estimates from analysts polled by LSEG:
Earnings: $1.89 a share vs. $1.84 per share expected
Revenue: $84.74 billion vs. $84.19 billion expected
Here are other numbers Wall Street was watching:
Alphabet's revenue was up 14% year over year, driven by search as well as cloud, which surpassed $10 billion in quarterly revenues and $1 billion in operating profit for the first time.
The company reported ad revenue of $64.62 billion — up from $58.14 billion last year, showing that Google's advertising business continues to grow, though at a slower pace than in the first quarter, after rising inflation and interest rates tightened marketing budgets in 2022 and 2023.
While YouTube ad revenue missed estimates, it still grew to $8.66 billion compared to $7.66 billion in the year-ago quarter. Though it's the largest video platform in the world, it faces increased competition from social video sites like TikTok.
Net income increased to $23.6 billion, or $1.89 per share, compared to $18.4 billion, or $1.44 per share, in the year-ago quarter.
The company's "Other Bets" unit, which includes its self-driving car company Waymo, brought in $365 million, up from $285 million a year ago. Finance chief Ruth Porat announced on the company's earnings call that Alphabet is committing a new $5 billion multiyear investment in Waymo.
During the second quarter, Alphabet saw a number of expansion updates, including for Waymo, which opened its service to all San Francisco