Alphabet’s second-quarter revenues surpassed projections on Tuesday, backed by increased digital ad sales and a promising demand for its cloud computing services. Despite a more than 30 percent escalation in its shares this year, the changes were negligible in after-market trading. Ad sales, the primary source of Alphabet’s revenue, escalated by 11 percent to approximately £46.5 billion. The firm utilises customer data to better aim their ads within its search product.
During the period of April to June, the revenue experienced a 14 percent growth, reaching around £61 billion, surpassing the London Stock Exchange Group’s consensus estimate of £60.6 billion. Revenues of cloud computing services, a key indicator of the state of enterprise technology expenditure, observed an enhancement of 28.8 percent, reaching nearly £7.4 billion, surpassing the predicted £7.3 billion.
Despite Google facing increased regulatory scrutiny, it was plotting its major acquisition till date- a £16.5 billion purchase of cybersecurity company Wiz. However, Wiz declared to its employees on Monday that it will abandon the deal and opt for an IPO instead. Google also previously considered acquiring customer relationship management company HubSpot earlier this month, but later decided against this move. This acquisition would have put Alphabet in direct competition with Salesforce, Oracle, and others.
Revenue from Alphabet’s “other bets”, which include experimental projects and its autonomous vehicle division Waymo, escalated by 28 percent to approximately £263 million. Its YouTube division saw a boost in ad sales by 13 percent, reaching around £6.2 billion, as per Reuters.