Alphabet Q2 beats estimates, revenue up 21 percent YoY
Google parent company Alphabet has rebounded from its dismal first quarter, posting better-than-expected Q2 results Thursday after the bell.
As usual, there are a lot of numbers to look at in Alphabet's earnings report. The tech giant reported a net income of $4.88 billion, or $7.00 per share (statement).
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Non-GAAP earnings were $8.42 per share on a revenue of $21.5 billion, up 21 percent year-over-year, when including traffic acquisition costs (TAC).
Wall Street was looking for Q2 earnings of $8.04 per share with $20.77 billion in revenue.
Net revenue excluding TAC was expected to be at least $16.9 billion.
Alphabet delivered above target with $17.53 billion in revenue excluding TAC.
"Our terrific second quarter results, with 21 percent revenue growth year on year, and 25 percent on a constant currency basis reflect the successful investments we've made over many years in rapidly expanding areas such as mobile and video," Ruth Porat, Alphabet's CFO, said in a statement.
Alphabet's shares rose 4 percent in after hours trading.
Google revenues, which include more of the enterprise cloud, software and data management products, attributed most of Q2 sales with $21.315 billion in revenue, up from $20.091 billion the previous quarter.
Google's cost-per-click, which is how much it makes off each advertising click, decreased two percent year-over-year.
In the Other Bets category, which is made up primarily of Nest and Fiber, as well as Alphabet's healthcare-driven initiatives and other speculative projects or 'moonshots,' the tech giant posted revenue of just $185 million over the quarter, with operating losses reaching $859 million. Last quarter, losses in this category totaled $802 million.
Looking toward the second quarter, Wall Street is expecting non-GAAP earnings of $8.35 per share with $21.63 billion in revenue.