Internet company Alphabetin turnover increased in the second quarter of the year to 84.7 billion dollars from 74.6 billion dollars the previous year. Analysts were expecting $84.4 billion.
Operating profit increased to $27.4 billion from $21.8 billion. The expectation was $26.5 billion.
Earnings per share increased to $1.89 in April–June from last year’s $1.44. The expectation was $1.85.
The forecasts are the consensus of 46 analysts collected by the Factset data service.
The company’s growth engine is cloud services, whose turnover rose to 10.3 billion dollars, as expected, from 8.0 billion dollars last year. At the same time, the profits of cloud services more than doubled to 1.2 billion dollars.
There was also growth in search service advertisements, whose revenue increased to $48.5 billion from $42.6 billion.
YouTube advertising revenue grew by $1 billion to $8.7 billion, but fell short of expectations.
The result was announced after Wall Street’s stock exchanges closed, but Alphabet’s stock was in a gentle decline in the secondary market.
“Our strong performance this quarter shows the strength of search services and the growth of cloud services. We innovate at all levels of artificial intelligence,” says the company’s CEO Sundar Pichai in the press release.
According to Pichai, the company will continue to invest to support good growth opportunities, while re-engineering its cost level.