Proactive Investors - Alphabet (NASDAQ:GOOGL) Inc (NASDAQ:GOOG) exceeded Wall Street’s expectations for both revenue and earnings per share (EPS) in the second quarter of 2024, buoyed by robust growth in its cloud computing and digital advertising sectors.
The technology giant reported revenue of $84.74 billion for the quarter ending June 30, surpassing the $84.37 billion anticipated by analysts and a 14% increase from the $74.6 billion recorded in the same period last year.
The company’s EPS came in at $1.89, beating the forecast of $1.84 and surpassing last year’s $1.44 per share.
Alphabet’s cloud computing division saw particularly strong performance, with revenues rising 28.8% year-over-year to $10.35 billion, exceeding expectations of $10.09 billion. This surge reflects growing corporate investment in cloud technology and infrastructure.
In its advertising segment, Alphabet also outperformed projections. Revenue from Google’s ad business totaled $64.62 billion, slightly ahead of the expected $64.53 billion. Notably, YouTube ads contributed $8.7 billion, continuing its significant traction within the digital ad landscape.
The company’s “Other Bets” category, which includes various experimental ventures, reported revenues of $365 million, up from $285 million a year ago.
CEO Sundar Pichai attributed the strong results to the company's ongoing innovation and leadership in AI and cloud technologies.
“Our strong performance this quarter highlights ongoing strength in Search and momentum in Cloud. We are innovating at every layer of the AI stack,” Pichai said in a statement.
“Our longstanding infrastructure leadership and in-house research teams position us well as technology evolves and as we pursue the many opportunities ahead.”
Alphabet's shares initially fell by 3% in after-hours trading. However, the stock is currently up 1.3% in post-market activity.