Alpahbet Reports Q2 2016 Earnings of $4.9B ON $21.5B in Revenue
Alphabet reported quarterly earnings that beat analysts’ expectations on Thursday. The parent company of Google posted earnings of $8.42 a share on $21.5 billion in revenue. Quarterly sales rose 21 percent year over year.
Alphabet’s growth continued in the second quarter as companies bought more ads on its search engine and other products, while users clicked more on those ads. Alphabet revenues, fueled almost entirely by Google’s advertising business, rose 21% to $21.5 billion in the second quarter over a year prior. Excluding payments to advertising partners, revenue was $17.5 billion, beating analysts’ estimate of $16.86 billion.
Net profit for Alphabet rose to $4.88 billion, or $7 a share, from $3.93 billion, or $4.93 a share, a year prior. Excluding certain items, Alphabet earned $8.42 a share, beating analysts’ estimates of $8.04 a share.
Google’s Android smartphone software gives its search engine and other services top billing on more than a billion devices, while the company also pays Apple Inc. to make Google the default search engine on iPhones.
While Google still controls about 31% of the roughly $187 billion world-wide digital-ad market, Facebook has stolen about 3 percentage points of market share from Google, rising to 12% from 8.6% in 2014, according to research firm eMarketer. One downside to mobile’s rise for Google has been a simultaneous decline in the average amount that advertisers pay Google per ad click.