Google parent company Alphabet Inc. reportedly exceeded the second-quarter earnings expectations of Wall Street, benefitting from the upsurge in digital commerce amid the pandemic.

Sources close to the matter stated that the search-and-services firm clocked USD 61.9 billion in revenue, USD 18.5 billion in net income, and USD 27.26 in earnings per share for the quarter ending June 30, 2021. These results translate to a 62% increase in revenue and a 166% surge in net profits.

The Android-maker crushed Wall Street’s estimation of total earnings of USD 56 billion and USD 19.14 per share for Google’s parent firm. The tremendous growth can be ascribed to the excellent performance of the company’s divisions, such as Google Cloud and YouTube.

YouTube's USD 7 billion in revenue is up 84% year over year. It also revealed that its YouTube Shorts product crossed 15 billion views daily worldwide, indicating a 131% increase from the 6.5 billion views reported in March.

Meanwhile, Google Cloud reported USD 4.6 billion in revenue, up 54% year over year, which is slightly higher than what Microsoft posted for its Azure cloud unit. Google Cloud's operating loss saw a reduction from USD 1.4 billion in the previous quarter to a far more manageable USD 591 million deficit in the recent quarter, sources cited.

It is also worth noting that Alphabet's skunkworks group brought in revenues of USD 192 million, up from USD 148 million the year before. The collection of trials and errors, on the other hand, lost USD 1.4 billion in the quarter as compared to USD 1.1 billion the previous year.

Google's latest financial report since March indicates that it would shift its focus from precisely tracking individual users based on their online activity, which some experts saw as a move to cement the company's dominance in the digital ad business.

Source Credit –

https://techcrunch.com/2021/07/27/alphabet-crushes-q2-earnings-estimates-as-google-cloud-cuts-losses-grows-54/