Alphabet Inc (NASDAQ:GOOG), the parent company of Google, saw its profits fall during the second quarter amid slowing growth from the technology company’s all-important YouTube advertising revenue.
Earnings per share (EPS) came in at US$1.21 versus consensus estimates of US$1.31, and below the comparable year-ago quarter’s profit of US$1.36.
Total revenue hit US$69.69 billion, just below analyst estimates of over US$70 billion and nearly 13% over last year’s 2Q levels of S61.88 billion.
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YouTube's revenue came in at US$7.34 billion compared to $7 billion in 2Q 2021. In the year-earlier period, YouTube ad revenue jumped 84% as Google rebounded from the coronavirus pandemic.
Shares of Alphabet, however, gained around 2.7% at US$108.11 after the bell on Tuesday as investors digested the results.
Sundar Pichai, CEO of Alphabet and Google, said: “In the second quarter our performance was driven by Search and Cloud. The investments we’ve made over the years in AI and computing are helping to make our services particularly valuable for consumers, and highly effective for businesses of all sizes. As we sharpen our focus, we’ll continue to invest responsibly in deep computer science for the long-term.”
The results followed a 20-to-one stock split executed on July 15. Echoing trends in the wider tech market, Alphabet has declined around 23% so far in 2022, although year-to-date losses are largely in line with broader NASDAQ trends.
Contact Angela at angela@proactiveinvestors.com
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