Google’s parent company Alphabet reported Q2 2021 earnings after the bell Tuesday, crushing analyst expectations.
- Earnings per share (EPS): $27.26 vs $19.34 per share, according to Refinitiv estimates.
- Revenue: $61.88 billion vs $56.16 billion, according to Refinitiv estimates.
- YouTube advertising revenue: $7.00 billion vs $6.37 billion expected, according to StreetAccount estimates.
- Google Cloud revenue: $4.63 billion vs $4.40 billion expected, according to StreetAccount estimates.
- Traffic acquisition costs (TAC): $10.93 billion vs $9.74 billion expected, according to StreetAccount estimates.
Total Google ad revenue increased to $50.44 billion, up 69% from the year-ago quarter, which came amid the onset of Covid.
Retail was by far the largest contributor to the company’s ad growth, said Google’s chief business officer Philipp Schindler in the earnings call Tuesday.
YouTube revenue came in over $7 billion, up 83% from last year, drawing close to Netflix’s quarterly revenue, which was $7.34 billion. YouTube Shorts, the company’s new TikTok competitor, just surpassed 15 billion daily views, Alphabet CEO Sundar Pichai said.
Alphabet chief financial officer Ruth Porat said she expects a “more muted tailwind to revenues in the third quarter.” She said it’s too early to forecast the longer term trends as markets re-open, especially given Covid case rates growing.