Google Parent Alphabet Sees Dive in Profit as Coronavirus Hits Ad Market

Google CEO Cites Long List of Search Rivals in Antitrust Defense

Google ad rebound offsets Alphabet's first-ever sales drop

Shares were essentially flat in after-hours trading following the release.

"Although we are pleased that ad revenue gradually improved throughout the quarter, we do believe it's premature to say that we are out of the woods", Porat said during an earnings call.

Alphabet revenue dropped 2% from a year ago, 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.

Competition regulators across the Americas, Europe and Asia are weighing whether Google has stifled competition on its way to dominating search, mobile software and other businesses, with some bodies even considering forcing it divest parts of its ad operations.

Google ad revenue fell in the quarter, but all three parts of Google's ad business outperformed our expectations for Q2, including a substantial beat for search revenues, down 10%, compared with the firm's expectations of a 17% decline, according to eMarketer.

Coronavirus: Australia's Victoria records huge case jump
Students in grades 1, 2, 3, 6, 7 and 8 will attend one day per week, while those in grades 4 and 9 will attend two days a week. Almost 10,000 coronavirus cases of Australia's total 16,303 infections have been reported in Victoria since late January.


"We saw a gradual return in user search activity to more commercial topics throughout the quarter, followed by an increase in spending by advertisers", she said.

In a sea of red, their Google Cloud product appears to have been one of their main saving graces, growing revenue by more than 40%. But sales for the period were down from $4.04 billion in the first quarter, when YouTube's advertising revenue boomed 33%. "And we are helping many government agencies deliver care for their citizens, including the states of Oklahoma and NY here in the USA, and Italy and Spain in Europe".

Alphabet announced a US$28 billion boost to its share buyback program.

Google earlier this year hired former PayPal chief operating officer Bill Ready to build out the company's commerce offering.

Spending and hiring will continue for the cloud business, Porat said.

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A man in his 50s was among 14 people who died from the coronavirus in the last 24 hours in Victoria. Those people have been referred to police, and may face a A$1,652 (905.98 pounds) fine.


Google also cut back on spending, with purchases of property and equipment falling 12% in the quarter.

"G Suite maintained healthy growth in average revenue-per-seat, as well as in seat growth, which does not include customers who took advantage of our free trials as they shifted their employees to work from home", she said.

Analysts had only expected $8.21 earnings per share vs $10.13 delivered.

Despite their good revenue performance, net income was down by 30% to $6.96 billion.

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Sarlo said she anticipates a survey to be distributed to parents as well as a request to register students. Ontario says all four school boards in Ottawa will offer an adapted model for secondary school students.


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