Google Alphabet earnings up, share prices jump
By Joseph Toppe
22:39, 27 July 2021
Shares for Google’s parent Alphabet are up 3% following a second quarter earnings report powered by strong advertising sales.
Released after Nasdaq closed, Google Alphabet’s net income earnings per share in the second quarter reached $18.53bn, or $27.26 a share, compared with net income of $6.96bn, or $10.13 a share, in the same quarter last year.
Since the beginning of 2021, Alphabet shares have shot up 50% while the S&P 500 Index is up 17%.
In a press release issued by the company on Tuesday, Ruth Porat, CFO of Google and Alphabet, said strong second quarter revenues of $61.9bn reflect elevated consumer online activity and broad-based strength in advertiser spend.
“Again, we benefited from excellent execution across the board by our teams,” she said.
Ad revenue steers earnings
Total Google ad revenue surged 69% from the second quarter in 2020 to $50.44bn.
YouTube advertising revenue made $7bn, Google Cloud revenue hit the $4.63bn mark, while Traffic acquisition costs peaked at $10.93bn.
Revenue after removing traffic acquisition costs rose to $50.95bn from $31.6bn posted the same time one year ago, while overall revenue jumped 62% to $61.9bn, marking the first time Alphabet has surpassed $60bn in quarterly sales.
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World's rising tide
Sundar Pichai, CEO of Google and Alphabet, said there was “a rising tide” of online activity in many parts of the world over the company’s second quarter.
“Our long-term investments in AI and Google Cloud are helping us drive significant improvements in everyone’s digital experience,” he said.
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