Google parent Alphabet sees revenue fall for first time ever
Google parent Alphabet saw revenue fall for the first time in its history today, although it beat analyst expectations for its second quarter earnings.
Revenue fell to $38.3bn from $38.9bn in the second quarter, compared to Refinitiv estimates of $37.4bn.
It also beat expectations for earnings per share, which came in at $10.13, instead of $8.21 as forecast.
YouTube advertising revenue increased 5.6 per cent to $3.8bn, up from $3.6bn the year before. However, sales from Google Search slippped nearly 10 per cent to $21.3bn.
Meanwhile Google Cloud pulled in $3bn – up from $2.7bn in the same period last year.
“We’re working to help people, businesses and communities in these uncertain times,” said Sundar Pichai, Google and Alphabet’s chief executive.
“As people increasingly turn to online services, our platforms — from Cloud to Google Play to YouTube — are helping our partners provide important services and support their businesses.”
At the end of the first quarter, finance chief Ruth Porat warned that the second period would be “difficult” as the coronavirus lockdowns began.
Although Google has become central to many people due to increased internet usage during lockdown, many companies were forced into cutting ad revenues and marketing spending in a bid to shore up their finances.
Shares yo-yoed in after-hours trading, but currently stand 0.5 per cent up.