Online advertising pushes Google’s Q2 2021 revenues up 62% to $61.9 bn

Alphabet Inc., the parent company of Google, has reported a 62% jump in its consolidated revenues for the quarter ended June 30, 2021 to reach $61.9 billion. Operating income was $19.4 billion, up 203%, while the operating margin for the same quarter was 31%. Other income and expense stood at $2.6 billion, which reflected the value of investments in equity securities and the Net income was stated to be $18.5 billion.

In a release issued, Sundar Pichai, CEO of Google and Alphabet, said, “In Q2, there was a rising tide of online activity in many parts of the world, and we’re proud that our services helped so many consumers and businesses. Our long-term investments in AI and Google Cloud are helping us drive significant improvements in everyone’s digital experience.” 

Ruth Porat, CFO of Google and Alphabet, added here, “Our strong second quarter revenues of $61.9 billion reflect elevated consumer online activity and broad-based strength in advertiser spend. Again, we benefited from excellent execution across the board by our teams.” 

Google reported Q2 earnings per share (EPS) of $19.11, improving a whopping 88.6% from EPS of $10.13 in the year-ago period. 

Total Google Services revenues were $57.1 billion, up 63%, while Google’s Core internet research ad revenue business were up 68%. YouTube ad revenue went up by 68% at $7 billion and Network Ad revenue went up by 60% to $7.6 billion by Ad Manager and AdMob. 

Traffic Acquisition Cost (TAC), which was $10.9 billion in the same quarter earlier, went up to 63%, and the growth in other cost of revenues, which was $15.3 billion, went up to 29%. 

Revenue is forecast at $55.9 billion, increasing about 46% from sales in digital ad spending of $38.3 billion in the same quarter a year earlier. 

Google Cloud revenue surged 54% to $4.6 billion. Google Cloud also includes Google’s infrastructure and data analytics platforms, collaboration tools, and other services for enterprise customers and generates revenues primarily from fees received for Google Cloud Platform services and Google Workspace collaboration tools.