Google's parent company Alphabet Inc revealed its quarterly earnings that beat Wall Street's expectations.
Alphabet’s revenue grew by 21.3 percent to $21.5 billion (Rs. 1 lakh cr approx.), while earnings jumped to $4.88 billion (Rs. 32 thousand cr approx.) from $3.93 billion (Rs. 26 thousand cr approx.) for the comparable period a year ago. The company’s shares rose 6.5 percent to $816 (Rs. 57 thousand approx.) in after-hours trading on Thursday.
Google co-founders Larry Page and Sergey Brin gained a collective $3.2 billion (Rs. 21 thousand cr approx.) in after-hours trading that followed Alphabet's strong second quarter earnings report. After trading, Page had a net worth of $39 billion (Rs. 2 lakh cr approx.) and Brin had a net worth of $38.2 billion (Rs. 2 lakh cr approx.), which made them the twelfth and thirteenth richest people in the world respectively.
Compared to last year’s second quarter the revenue increased 21 per cent as a result of strong advertising sales. Over the past year, Google, Facebook and Twitter have all doubled down on video, a format where advertisers are willing to pay a premium for a few seconds of users' undivided attention.
To improve video recommendations to users, Google has used artificial intelligence which has brought more engagement on the site. This was revealed by Google Chief Executive Officer Sundar Pichai.
"Video is a huge component of digital content, and YouTube continues to shine," he said. "It's a thriving home for creators."
Excluding items, Alphabet earned $8.42 (Rs. 564 approx.) per share, beating analysts’ average estimate of $8.04 (Rs. 538 approx.), according to a report by Thomson Reuters.
Alphabet Chief Financial Officer Ruth Porat, in a media report widely credited bringing a culture of greater financial discipline to the company. She also added that she will continue to inspect the Other Bets business. “I’ve commented many times that our focus on long-term revenue growth does not give us a pass on managing expenses,” she told investors.