Google Parent Alphabet Says YouTube Q2 Ad Sales Up 5.8% To $3.8 Billion; Search Sales Slip To $21.3 Billion

The COVID-19 pandemic shuttered broad sectors of the economy and kept consumers at home, resulting in a major advertising disruption even as engagement across many platforms surged. The numbers — out after the closing bell Thursday alongside other big tech companies like Facebook — will give investors the most thorough peek to date at the health of digital advertising.
Alphabet doesn't break out numbers for YouTube TV, the live television platform launched in 2017. The service last month announced a hefty $15 price hike to $64.99 as pricing pressure continues to squeeze the so-called "skinny bundles." Early in 2020, Google said YouTube TV had passed 2 million subscribers.
That continued and Wall Street was right in predicting a rare decline in revenue for the Sundar Pichai-led company. The pain was evident in the first three months of the year from the lockdown starting in March. In a call later this afternoon investors will look for current ad trends as COVID-19 cases surge in states across the country.
Analysts had expected Alphabet to report earnings of $7.94 a share on sales of $37.33 billion — compared with $14.21 a share and sales of $38.94 billion a year earlier.
“We continue to navigate through a difficult global economic environment.” “In the second quarter our total revenues were $38.3B, driven by gradual improvement in our ads business and strong growth in Google Cloud and Other Revenues,” said Alphabet and Goolgle CFO Ruth Porat.
The company also faces inquiries in Europe and Australia. Pichai is coming straight off of testimony before a Congressional antitrust subcommittee on Wednesday along with the CEOs of Facebook, Amazon and Apple as part of a yearlong probe into anti-competitive practices. Lawmakers were combative and it’s not clear where it will lead.
Net income came in at $6.59 billion, or $10.13 a share. Total sales, including cloud, eased 2% to $38.3 billion.
Google parent Alphabet said YouTube advertising firmed to $3.8 billion in the second quarter from $3.6 billion the year before, as sales from search slippped nearly 10% to $21.3 billion and the giant beat estimates on the top and bottom lines.
Alphabet will be hosting an analyst call at 4:30 pm ET.” />

Leave a Reply

Your email address will not be published. Required fields are marked *