Alphabet, Google’s parent company has managed to beat expectations by delivering revenue of $38.3 billion in Q2 2020, despite the economic ravages of the pandemic.
While this is 2% down on their Q2 2019 revenue ( their first quarterly revenue decline ever) it is much less than feared for a primarily advertiser-driven company.
Analysts had only expected $8.21 earnings per share vs $10.13 delivered.
In a sea of red, their Google Cloud product appears to have been one of their main saving graces, growing revenue by more than 40%. Google’s cloud business appears to be set to overtake YouTube in the near future and become an important growth centre for the company, challenging Microsoft’s Azure product.
YouTube also grew well, possibly driven by their YouTube TV product and their “other” Google revenue (Google Play and hardware such as Nest and Pixel) was up 25.6% YoY.
Other bets (such as Waymo) recorded revenue of $148 million and lost $1.116 billion.
Despite their good revenue performance, net income was down by 30% to $6.96 billion. The market expected worse, however, and Google’s share price is currently up half a percent in after-hours trading.