Coronavirus pandemic hit the world and crashed the economic situation all over the world. While all major organizations and tech companies faced one major blow after another to their financial empires amidst this difficult period, Google’s parent company Alphabet had already anticipated seeing a decline in revenue, especially in the second quarter of the year 2020.
And as per the dreaded anticipation, the company has officially seen it's the first-ever dip in the revenue in all its history. The total revenue generated was $38.3 billion, which is 2% less than what it was in the second quarter of 2019. The net income last year was $9.9 billion, but this year, around the same time, the net income is $6.9 billion.
Revenue for Search in 2019 was $23.6 billion, but this year, it is $21.3 billion in the second quarter.
While some losses were anticipated and quite expected, owing to the difficult times the world is going through, YouTube and Google Cloud did show some financial gains too. So, everything is not so gloomy and doomy for Alphabet.
On YouTube, the advertising revenue last year was $3.6 billion, and this year it has risen to $3.81 billion. Google Cloud’s revenue of 2019 second quarter was $2.1 billion, and this year it is $3.01 billion.
Alphabet is not so overly concerned with this matter, because they believe that the growth near the end of the second quarter is encouraging, but still, it is quite early to make judgments on the durability of recent trends and the uncertain global environment.
The CEO of Google, Sundar Pichai has said that the early signs of stabilization that the company showed towards the end of the second quarter are quite hope-lifting as the commercial activity online starts getting back to normal.
YouTube and Google Play subscriptions also brought in some profits with the app and game downloads going over 35%. Then, due to some ‘large’ customers like Deutsche Bank, Google Cloud has seen a major revenue gain amidst the pandemic.
Many other customers are choosing Google Cloud to lower their costs by improving operating efficiency and for the sake of innovation.
Some other divisions of Alphabet like experimental X lab, Verily life sciences unit saw some losses too in the revenue. But Google has sort of made up for the loss from some other revenues generated from sources like its hardware, Play Store, non-advertising YouTube revenues, etc. They were reported to have generated $5.12 billion from $4 billion.
Alphabet was the first company out of the other four tech giants that reported its quarterly earnings, and the only one whose results saw a decline in revenue from the previous year.
Read next: Is Google preferring its internal links and services over organic results? Here's what recent research suggests.
And as per the dreaded anticipation, the company has officially seen it's the first-ever dip in the revenue in all its history. The total revenue generated was $38.3 billion, which is 2% less than what it was in the second quarter of 2019. The net income last year was $9.9 billion, but this year, around the same time, the net income is $6.9 billion.
Revenue for Search in 2019 was $23.6 billion, but this year, it is $21.3 billion in the second quarter.
While some losses were anticipated and quite expected, owing to the difficult times the world is going through, YouTube and Google Cloud did show some financial gains too. So, everything is not so gloomy and doomy for Alphabet.
On YouTube, the advertising revenue last year was $3.6 billion, and this year it has risen to $3.81 billion. Google Cloud’s revenue of 2019 second quarter was $2.1 billion, and this year it is $3.01 billion.
Alphabet is not so overly concerned with this matter, because they believe that the growth near the end of the second quarter is encouraging, but still, it is quite early to make judgments on the durability of recent trends and the uncertain global environment.
The CEO of Google, Sundar Pichai has said that the early signs of stabilization that the company showed towards the end of the second quarter are quite hope-lifting as the commercial activity online starts getting back to normal.
YouTube and Google Play subscriptions also brought in some profits with the app and game downloads going over 35%. Then, due to some ‘large’ customers like Deutsche Bank, Google Cloud has seen a major revenue gain amidst the pandemic.
Many other customers are choosing Google Cloud to lower their costs by improving operating efficiency and for the sake of innovation.
Some other divisions of Alphabet like experimental X lab, Verily life sciences unit saw some losses too in the revenue. But Google has sort of made up for the loss from some other revenues generated from sources like its hardware, Play Store, non-advertising YouTube revenues, etc. They were reported to have generated $5.12 billion from $4 billion.
Alphabet was the first company out of the other four tech giants that reported its quarterly earnings, and the only one whose results saw a decline in revenue from the previous year.
Read next: Is Google preferring its internal links and services over organic results? Here's what recent research suggests.
