Google parent company Alphabet sees its first revenue decline in history

Google parent company Alphabet sees its first revenue decline in history

Google parent company Alphabet warned in last quarter that it was expecting to see the impact of coronavirus in the second quarter results, and it did: the company saw its first revenue decline in its history. But it managed to beat Wall Street’s revenue expectations.

Total revenue for the quarter was $38.3 billion, versus the $37.4 billion expected, but that marks a 2 percent decline from the second quarter of 2019. Net income dropped from $9.9 billion a year ago, to $6.9 billion. Revenue for Search was $21.3 billion, down from $23.6 billion.

One bright spot was YouTube, where advertising revenue rose from $3.6 billion last year, to $3.81 billion this year. Google’s Cloud division saw rising revenue as well.

“We continue to navigate through a difficult global environment,” CFO Ruth Porat said in a statement announcing the earnings.

Revenue for Alphabet’s Other Bets category — which includes its experimental X lab, Waymo self-driving subsidiary, and a number of other divisions like its Verily life sciences unit was down, from $162 million to $148 million. Other Bets saw an operating loss of $1.12 billion.

Google “other revenues,” which includes its hardware, Play Store, and non-advertising YouTube revenues — reported $5.12 billion, up from $4 billion.

Developing…

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