Google posts Q2 revenue of $32.7 billion, big beats on top and bottom line
$5 billion in European Commission fines hurt -- but not that much
Google parent Alphabet had a very strong quarter. The company announced $32.7 billion in total revenue, up 26 percent year over year. Both revenues and earnings beat Wall Street consensus estimates.
Revenues exceeded analyst expectations by roughly $530 million. Earnings per share were $11.75 and also beat expectations. However, operating income was impacted by European Commission antitrust fines of $5 billion.
Quarterly advertising revenue came in just over $28 billion, while Google’s parent recorded $4.4 billion in “other revenues.” So-called “other bets” added $145 million in revenue but had increased operating losses of $732 million.
Traffic acquisition costs were 23 percent of ad revenues or $6.4 billion, basically unchanged sequentially. Aggregate paid clicks were up 58 percent year over year and 15 percent sequentially. CPCs were down 22 percent and 10 percent, respectively.
Google presented results with and without European Commission antitrust fines. Operating income was $2.8 billion after the fine. It would have otherwise been $7.9 billion without it.
Google shares are up in after-hours trading.
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