Google’s Advertising Business Continues to Grow Rapidly

Ad revenue for the Google search engine rose almost 36 percent year-on-year to $43.3 billion. Overall, Alphabet’s quarterly results significantly exceeded market expectations.

Google continues to benefit massively from the boom in online advertising in the corona pandemic. The parent company of the Internet giant, Alphabet, booked a jump in sales of 32 percent and a profit of 20.6 billion dollars (18.3 billion euros) in the last quarter. The main pillar of the business remains the ads in the context of Internet search queries.

The pandemic has seen more ad spend go online, and at the same time, people are doing more things online. Google benefits from both trends. Ad revenue for the Google search engine rose almost 36 percent year-on-year to $43.3 billion. At $8.6 billion, the YouTube video platform brought in around a quarter more advertising revenue than a year earlier.

Overall, Google‘s ad revenue increased from $46.2 billion to $61.2 billion within a year. With an operating result of around 26 billion dollars, Google services were also the only profit maker.

Cloud offerings in the red
Cloud offerings, meanwhile, grew from $3.8 billion to $5.5 billion in revenue while operating in the red at $890 million. Google is attempting to catch up with rivals Amazon and Microsoft in the online software and storage business.

The group’s so-called “other bets” such as self-driving cars and delivery drones made less sales, but at the same time more losses. Revenue fell from $196 to $181 million. The operating minus rose from 1.1 to 1.4 billion dollars.

exceeded expectations
Overall, Alphabet‘s quarterly results significantly exceeded market expectations. Group sales reached $75.3 billion, while analysts had expected a good $72 billion. The bottom line is that quarterly profit rose from 15.2 to 20.6 billion dollars, as Alphabet announced after the US market closed on Tuesday.

The stock jumped a good nine percent in after-hours trading. Alphabet also announced a 1-for-20 stock split. This will make the stock more affordable for retail investors and easier to trade after last trading above $2700.