Alphabet beat second-quarter revenue and profit estimates on Tuesday, driven by an increase in digital promoting sales and healthy demand for its cloud computing services, but flagged that capital expenses would remain high for the 12 months.
Alphabet’s results underscore robust demand for digital ads, driven by events just like the Paris Olympics and elections in several countries including the US, while a recovery in enterprise spending is boosting its software business.
Strong adoption of generative artificial intelligence technology drove its cloud business.
Promoting sales, Alphabet’s chief revenue source, rose 11% to $64.6 billion. The corporate sells ads in its search product using customer data to higher goal them.
Net income within the quarter ended June 30 rose 29% to $23.6 billion, besting the common estimate of $22.9 billion.
Investor response was mixed, with the shares initially rising about 2% before dipping by an analogous percentage. They’d gained greater than 30% this 12 months, outperforming a 20% rise in tech-heavy Nasdaq Composite Index.
“This was one other stellar quarter from Google with beats across the board,” said Ido Caspi a research analyst with Global X, citing ad sales and artificial intelligence offerings as drivers.
Total revenue grew 14% to $84.74 billion, compared with analysts’ consensus estimate of $84.19 billion in accordance with LSEG data. Ad sales in its YouTube division rose 13% to $8.67 billion.
Revenue from cloud computing services, a widely watched barometer for the health of enterprise technology spending, rose 28.8% to $10.35 billion. Analysts had expected $10.16 billion.
Alphabet reported capital expenditures of $13 billion within the June quarter. Ruth Porat, in her last conference call as Alphabet’s chief financial officer, told investors that quarterly capital expenditures for the remainder of 2024 could be at or above $12 billion.
Within the January-March period, the corporate’s capital expenditure had jumped 91% to $12 billion, spooking investors.
Like its competitors, Alphabet is racing to roll out AI offerings as investors proceed to pour billions into the technology.
But its AI searches have produced a series of embarrassing results, comparable to the widely ridiculed suggestion to place glue on pizza to higher hold cheese. Google pulled back on the technology in May to work out kinks.
The technology will likely be rolled out to more countries, Alphabet CEO Sundar Pichai told investors on a call on Tuesday. “You’ll see us expand the use cases around it.”
Pichai, without providing a timeline, said AI products could soon drive revenue slightly than simply help corporations through cost-cutting and greater efficiency.
Despite heightened regulatory scrutiny, Google had been pursuing its largest acquisition ever, a roughly $23 billion buyout of cybersecurity firm Wiz. But Wiz told employees on Monday it was walking away from the deal and would as a substitute pursue going public.
Google also held talks to accumulate customer relationship management firm HubSpot before walking away from it earlier this month. The deal would have turned Alphabet right into a rival of Salesforce, Oracle and others in that market.
Google said on Monday it’s planning to maintain third-party cookies in its Chrome browser backtracking function after years of pledging to phase out the tiny packets of code used to trace web searches.
It marked a serious reversal after advertisers expressed concerns that the lack of cookies would limit their ability to gather and parse information for personalizing ads, making them depending on Google’s user databases.
Sales for the Mountain View, Calif. company’s so-called “other bets,” including experimental projects and its self-driving automobile unit Waymo, rose 28% to $365 million. Porat said the corporate is planning a multi-year $5 billion investment in Waymo, as rival Cruise slowly maps a course back to US roads after a highly publicized accident in October.
Alphabet beat second-quarter revenue and profit estimates on Tuesday, driven by an increase in digital promoting sales and healthy demand for its cloud computing services, but flagged that capital expenses would remain high for the 12 months.
Alphabet’s results underscore robust demand for digital ads, driven by events just like the Paris Olympics and elections in several countries including the US, while a recovery in enterprise spending is boosting its software business.
Strong adoption of generative artificial intelligence technology drove its cloud business.
Promoting sales, Alphabet’s chief revenue source, rose 11% to $64.6 billion. The corporate sells ads in its search product using customer data to higher goal them.
Net income within the quarter ended June 30 rose 29% to $23.6 billion, besting the common estimate of $22.9 billion.
Investor response was mixed, with the shares initially rising about 2% before dipping by an analogous percentage. They’d gained greater than 30% this 12 months, outperforming a 20% rise in tech-heavy Nasdaq Composite Index.
“This was one other stellar quarter from Google with beats across the board,” said Ido Caspi a research analyst with Global X, citing ad sales and artificial intelligence offerings as drivers.
Total revenue grew 14% to $84.74 billion, compared with analysts’ consensus estimate of $84.19 billion in accordance with LSEG data. Ad sales in its YouTube division rose 13% to $8.67 billion.
Revenue from cloud computing services, a widely watched barometer for the health of enterprise technology spending, rose 28.8% to $10.35 billion. Analysts had expected $10.16 billion.
Alphabet reported capital expenditures of $13 billion within the June quarter. Ruth Porat, in her last conference call as Alphabet’s chief financial officer, told investors that quarterly capital expenditures for the remainder of 2024 could be at or above $12 billion.
Within the January-March period, the corporate’s capital expenditure had jumped 91% to $12 billion, spooking investors.
Like its competitors, Alphabet is racing to roll out AI offerings as investors proceed to pour billions into the technology.
But its AI searches have produced a series of embarrassing results, comparable to the widely ridiculed suggestion to place glue on pizza to higher hold cheese. Google pulled back on the technology in May to work out kinks.
The technology will likely be rolled out to more countries, Alphabet CEO Sundar Pichai told investors on a call on Tuesday. “You’ll see us expand the use cases around it.”
Pichai, without providing a timeline, said AI products could soon drive revenue slightly than simply help corporations through cost-cutting and greater efficiency.
Despite heightened regulatory scrutiny, Google had been pursuing its largest acquisition ever, a roughly $23 billion buyout of cybersecurity firm Wiz. But Wiz told employees on Monday it was walking away from the deal and would as a substitute pursue going public.
Google also held talks to accumulate customer relationship management firm HubSpot before walking away from it earlier this month. The deal would have turned Alphabet right into a rival of Salesforce, Oracle and others in that market.
Google said on Monday it’s planning to maintain third-party cookies in its Chrome browser backtracking function after years of pledging to phase out the tiny packets of code used to trace web searches.
It marked a serious reversal after advertisers expressed concerns that the lack of cookies would limit their ability to gather and parse information for personalizing ads, making them depending on Google’s user databases.
Sales for the Mountain View, Calif. company’s so-called “other bets,” including experimental projects and its self-driving automobile unit Waymo, rose 28% to $365 million. Porat said the corporate is planning a multi-year $5 billion investment in Waymo, as rival Cruise slowly maps a course back to US roads after a highly publicized accident in October.
