Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Catch up on the day's biggest business stories
Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
Illustration: Lazaro Gamio/Axios
Alphabet revenue dropped 2% from last year, the company announced in second-quarter earnings Thursday, beating Wall Street expectations a day after Google CEO Sundar Pichai appeared before the House Judiciary antitrust subcommittee to face allegations of anticompetitive behavior.
Yes, but: Despite beating expectations on revenue, the company still reported its first-ever decline, thanks to a reduction in the advertising growth rate thanks to the coronavirus pandemic. Stock rose slightly in after-hours trading.
Why it matters: The company may have fared better than investors were expecting, but the company remains almost entirely dependent on ad revenue and experienced a difficult quarter.
What they're saying: Ruth Porat, chief financial officer of Alphabet and Google, said the company saw gradual improvement in its ad businesses and strong growth in Google Cloud and other revenues.
- “We continue to navigate through a difficult global economic environment," she said.
- “We’re working to help people, businesses and communities in these uncertain times,” said Sundar Pichai, CEO of Google and Alphabet. “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.”
By the numbers, via CNBC:
- Earnings: $10.3 versus $8.21 per share, based on Refinitiv consensus estimates
- Revenue: $38.3 billion, versus $37.37 billion expected by Refinitiv
- YouTube advertising revenue: $3.81 billion versus $3.78 billion expected, according to StreetAccount estimates
- Google Cloud revenue: $3.01 versus $3.06 billion expected, as per StreetAccount
- Traffic acquisition costs (TAC): $6.69 billion versus $6.67 billion expected, as per StreetAccount