Demand for ads, cloud services help Google beat expectations
Google's parent company Alphabet was the last of the three tech giants to report earnings this week, and its results were among the most impressive and unexpected. Strong demand for ads on Google's search engine and other products drove a 21 percent year-over-year increase in revenue. Clicks on Google ads increased 29 percent, and advertisers' cost-per-click dropped 7 percent from the prior year, according to the company.
Google's non-advertising business, which includes enterprise cloud services, the Google Play store and hardware, grew by 33 percent year over year, to $2.17 billion. During the earnings call, Google execs attributed much of that growth to its cloud business. Google's experimental projects, "moonshots" or "other bets," resulted in an $859 million loss on $185 million in revenue. The company banked $4.88 billion in net income on $21.5 billion in revenue during the second quarter of 2016.
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