Alphabet beats revenue estimates buoyed by cloud and YouTube

Alphabet beats revenue estimates buoyed by cloud and YouTube

The company beat revenue expectations by $950 million.

Google's second-quarter results are in, revealing a slight beat on Wall Street expectations, though it wasn't enough to save the company from its first revenue decline since going public.

Despite the dip, the company's stock remained steady after-hours.

Alphabet reported a quarterly profit of $6.96 billion, or $10.13 per share, compared with the analysts' average estimate of $5.645 billion, or $8.29 per share.

The company said it will "continue to navigate through a hard global economic environment".

The company's board also authorized the company to repurchase up to $28 billion of its Class C shares.

However, she cautioned that it's hard to gauge whether those trends will continue.

Alphabet and Google CEO Sundar Pichai said that the company has been working hard to weather the current social and economic environment, and remains committed to helping its partners in business and education, as well as its general consumer base, make the best out of conditions through its properties like G Suite, Youtube, and Google Cloud.

"We continue to navigate through a hard global economic environment", she said.

As a result of the customer pullbacks amid the Covid-19 pandemic and the general maturing ad market, Alphabet itself cut marketing spending by half and instituted hiring freezes for the second half of the year in anticipation of a slowdown, CNBC reported. That rate of growth was lower than the 52% the business saw in the first quarter.

Revenue from Google Search dropped 10 percent to $21.31 billion, from $23.64 billion in the same period a year ago, but trends improved as the quarter progressed, according to Porat. "This is reflected in the strength of our backlog, which ended the quarter at $14.8 billion, substantially all of which relates to Google Cloud".

The internet giant on Thursday reported almost $38.3 billion in revenue for the second quarter, down 2% from the year prior. That doesn't include contractors.

"Although we still expect the pace of headcount growth to decelerate somewhat in 2020, we're continuing to hire aggressively in priority areas like cloud", Porat said. Along with other tech giants Apple, Facebook, and Amazon, it had to testify before Congress on Wednesday in a hearing about antitrust concerns.