Alphabet has reported $61.88bn in revenue for Q2, a 62% increase from the previous year, and a net income of $18.52bn.
YouTube has accelerated back into high growth for Q2 of 2021, as ad revenues hit a record $7bn for the period.
Advertising revenues at YouTube jumped 84%, up from $3.81bn in the year-earlier period when Covid-19 put a damper on marketing spending. Alphabet, Google’s parent company, reported YouTube’s ad revenue as part of its Q2 earnings – which blew past Wall Street expectations.
Overall, Alphabet posted a revenue of $61.88bn and a net income of $18.5bn (or $27.26 per share) – also, quarterly records. Analysts on average expected Alphabet to report Q2 revenue of $56.02bn and EPS of $19.21, according to financial research provider Refinitiv.
“In Q2, there was a rising tide of online activity in many parts of the world, and we’re proud that our services helped so many consumers and businesses,” Sundar Pichai, CEO of Google and Alphabet, said in announcing the results. “Our long-term investments in AI and Google Cloud are helping us drive significant improvements in everyone’s digital experience.”
On the earnings call, Pichai called out the momentum behind YouTube Shorts – the platform’s TikTok-like short form video feature – announcing that it is now generating more than 15 billion global daily views, up from 6.5bn in March.
Revenue for Google Search came in at $35.85bn in the second quarter, up 68% year over year. Google Cloud revenue jumped 54%, $4.63bn, while the division narrowed its operating loss to $591m (versus $1.43bn a year prior).
The revenue gains by Google and YouTube in the most recent quarter come after the company experienced a sales slowdown in Q2 of 2020, as advertisers pulled back on spending in the earlier days of the Covid-19 pandemic.