Google Sees its Advertising Revenue Jump 69% From Last Year

Tech giant Alphabet, the parent company of Google, reported its financial results for Q2 2021 this week, exceeded expectations as advertising grow was explosive amid the bounce back from coronavirus.

Google advertising revenue saw a 69% increase from lat year. Shares of the stock soared 3% in after-hours trading on the news on Tuesday.

Wall Street also learned that YouTube revenue came in over $7 billion, up 83% from last year, drawing close to Netflix’s quarterly revenue, which was $7.34 billion.

The stock rose more than 3% in after-hours trading.

For the quarter, Alphabet reported earnings per share of $27.26, ahead of the $19.34 a share that was expected per Refinitiv estimates.

Revenue at $61.88 billion was also highest than the $56.16 billion per Refintiiv estimates.

YouTube advertising revenue at $7.00 billion was higher than the $6.37 billion expected, according to StreetAccount estimates.

Google Cloud revenue came in at $4.63 billion vs $4.40 billion expected, according to StreetAccount estimates.

Traffic acquisition costs (TAC) was $10.93 billion vs $9.74 billion expected, also according to StreetAccount estimates.

Total Google ad revenue increased to $50.44 billion, up 69% from the year-ago quarter, which was hurt by the onset of the Covid pandemic.

Retail was by far the largest contributor to the company’s ad growth, according to Google’s chief business officer Philipp Schindler.

Schindler said connected TV is “the fastest growing consumer surface that we have,” stating how the company has over 120 million people who watch YouTube on their TVs every month.

Google Cloud brought in $4.63 billion, a big jump from $3.01 billion a year ago.

The company also recorded a quarterly net income benefit of $561 million, and EPS benefit of $0.83, from an accounting change related to the useful lifespan of its server and network equipment. That change took effect at the start of 2021.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.