Google’s Parent Company Alphabet Reported $9 Billion Profit In Quarter 2 2019

Alphabet, the parent company of Google, which specializes in Cloud business and advertising development, has recently reported its $38.9 billion revenue and $9 billion net income in the Quarter 2 of this year.

In terms of the QoQ advertising revenue, the company showed significant growth. The advertising revenue reached $32.6 billion, increasing from $28.09 billion in the second quarter of 2018. In addition, it also revealed a stock buyback of 25 billion dollars.

On July 25, Google CEO Sundar Pichai stated, “Our effort to build a more helpful Google for everyone brings countless opportunities to help users, partners, and enterprise customers every day.”

After that, while having a talk with analysts on an earnings call, the CEO revealed that Google’s Cloud business hit an annual revenue run rate of more than 8 billion dollars.

At the time when the trading on July 25 ended, these optimistic results helped Google increase its stock price by nearly 9%.

According to the Chief Executive Officer, “From improvements in core information products such as Search, Maps, and the Google Assistant, to new breakthroughs in AI and our growing Cloud and Hardware offerings, I’m incredibly excited by the momentum across Google’s businesses and the innovation that is fuelling our growth.”

Besides, there was an increase of 28 percent in paid clicks, as well as a decrease of 11 percent in cost-per-click on Google’s properties in Quarter 2.

The CFO of both Alphabet and Google Ruth Porat said, “With revenues of $38.9 billion, up 19 per cent versus the second quarter of 2018 and up 22 per cent on a constant currency basis, we’re delivering strong growth.”

She further said, “Our ongoing investments in compute capabilities and engineering talent reflect the compelling opportunities we see across the company.”

According to the company’s announcement, the traffic acquisition costs or TAC grew 13%, reaching 7.24 billion dollars in the previous quarter.