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GOOGL crushed earnings and revenue expectations
ByMatthew Johnston
Published July 27, 2021
06:05 PM EDT
Key Takeaways
- Google Cloud revenue surpassed analyst estimates.
- Google Cloud is one of Alphabet's primary business segments. It provides developers with a cloud platform for building, testing, and deploying applications.
- Google advertising revenue rose 68.9% compared to the year-ago quarter.
| Alphabet (Google) Earnings Results | |||
|---|---|---|---|
| Metric | Beat/Miss/Match | Reported Value | Analysts' Prediction |
| EPS | Beat | $27.26 | $18.92 |
| Revenue | Beat | $61.9B | $56.1B |
| Google Cloud Revenue | Beat | $4.6B | $4.4B |
Source: Predictions based on analysts' consensus fromVisible Alpha
Alphabet (GOOGL) Financial Results: Analysis
Alphabet Inc. (GOOGL), parent company of Google, reportedQ2 FY 2021 earningsthat smashed analyst expectations. Earnings per share(EPS) came in well above what analysts were forecasting, rising 169.1% year over year (YOY). Revenue also beat analyst estimates by a wide margin, up 61.6% compared to the year-ago quarter.GoogleCloud revenue came in at $4.6 billion, exceeding expectations. The company's shares were up more than 3% in extended trading. Over the past year, Alphabet's shares have provided atotal returnof 72.4%, well above the S&P 500's total return of 35.9%.
GOOGL Google Cloud Revenue
Google Cloud revenue grew 53.9%, its fastest pace since Q3 FY 2019. Google Cloud is one of the tech giant's primary business segments, the other being Google Services. The cloud segment provides developers with a highly scalable and reliable platform for building, testing, and deploying applications. It also offers workspace collaboration tools, including apps like Gmail, Docs, Drive, Calendar, Meet, and more. As of the end of the first quarter of 2021, Google Cloud had an estimated 9% of the $150 billion global cloud market, ranking it third behind Microsoft Corporation's (MSFT) Azure and top-ranked Amazon.com, Inc.'s (AMZN) Amazon Web Services.
GOOGL Ad Revenue
Google's total ad revenue rose 68.9% compared to the year-ago quarter, rising to $50.4 billion. Google's ad revenue took a hit amid the onset of the COVID-19 pandemic last year. The company's advertising business includes ad revenue from YouTube, Google Network, and Google's search engine, which controls approximately 90% of the global search engine market. YouTube revenue was up 83.7% YOY to $7.0 billion in the second quarter.
Alphabet's next earnings report (for Q3 FY 2021) is estimated to be released on Oct. 27, 2021.
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Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.
Alphabet Inc. "Alphabet Announces Second Quarter 2021 Results," Pages 1 & 2.
Visible Alpha. "Financial Data."
TradingView. "Price Chart: GOOGL and S&P 500."
Alphabet Inc. "Alphabet Announces Second Quarter 2021 Results," Page 2.
Alphabet Inc. "Form 10-K for the fiscal year ended December 31, 2020," Pages 6 & 7.
Statista. "Amazon Leads $150-Billion Cloud Market."
CNBC. "Google advertising revenue rises 69% from last year."
Statista. "Worldwide desktop market share of leading search engines from January 2010 to June 2021."
Alphabet Inc. "Alphabet Announces Second Quarter 2021 Results," Page 2.
Yahoo! Finance. "Earnings Calendar: GOOGL."
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