Google revenues drop for first time in the company’s history

Google revenues drop for first time in the company’s history

The market expected worse, however, and Google's share price is now up half a percent in after-hours trading.

Revenues dipped two percent to $38 billion (roughly Rs. 2.83 lakh crores), as chief financial officer Ruth Porat said; "We continue to navigate through a hard global economic environment".

"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.

Google appeared to weather the slowdown better than before, as the pandemic has made the internet more attractive to advertisers than TV, radio and other avenues.

The internet giant on Thursday reported almost $38.3 billion in revenue for the second quarter, down 2% from the year prior. Investors are increasingly interested in the prospects of smaller but faster-growing units. The advertising revenue of YouTube rose to $3.81 billion from $3.6 billion a year ago.

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 brought on around 4,000 new workers during the quarter, about the same as it did in the same period a year ago, despite saying earlier this year it would slow hiring. They closed at $1,538.37 in NY.

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The company's board also authorized the company to repurchase up to $28 billion of its Class C shares. "This is reflected in the strength of our backlog, which ended the quarter at $14.8 billion, substantially all of which relates to Google Cloud".

"Although we still expect the pace of headcount growth to decelerate somewhat in 2020, we're continuing to hire aggressively in priority areas like cloud", Porat said.

Google's "other" revenues, which covers things like hardware and Google Play purchases, were $5.12 billion for the quarter - up 25.6% year over year.

"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. Earnings per share were $10.13, compared with $14.21 a year ago.

The spending cuts weren't enough to stop net income from falling 30% to $6.96 billion.

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