Alphabet CEO Sundar Pichai gestures during a session at the World Economic Forum annual meeting in Davos.
Fabrice Coffrini | AFP | Getty Images
Google parent-company Alphabet beat expectations for its second quarter earnings Thursday, marking its first revenue decline in the company’s history
Here’s how it did against Refinitiv consensus estimates:
- EPS: $10.13 (non-GAAP), vs. $8.21 estimated.
- Revenue: $38.30 billion vs. $37.37 billion estimated.
- YouTube advertising revenue: $3.81 billion vs. $3.78 billion, according to StreetAccount estimates
- Google Cloud revenue: $3.01 billion vs. $3.06 billion, as per StreetAccount
- Traffic acquisition costs (TAC): $6.69 billion vs. $6.67 billion, as per StreetAccount
Although the company reported its first annual revenue decline in history (a drop of 2%), the stock rose slightly after-hours.
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. Around that time, Alphabet CEO Sundar Pichai said Google would be pulling back on some of its investments for the rest of the year amid the Covid-19 crisis, starting with hiring.
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