Google parent company Alphabet has recorded 24 per cent year-on-year profit growth in the 2016 second quarter, boosted by strong ad demand, as the tech giant continues to expand into mobile and video.
Alphabet posted revenue of US$21.5 billion (around $28.6 billion) for the quarter, up 21 per cent year-on-year, with net income totalling US$4.88 billion.
As reported by Reuters, analysts had on an average been expecting revenue of US$20.76 billion, according to Thomson Reuters I/B/E/S.
Google’s advertising revenue underpinned the results, with the quarterly figures revealing aggregate paid clicks enjoyed a healthy year-on-year rise.
Google’s advertising revenues totalled US$19.14 billion, up 19 per cent year-on-year. While aggregate cost-per-click fell 7 per cent year-on-year, aggregate paid clicks were up 29 per cent.
“The strength of the quarter is about mobile,” The Wall Street Journal reported Google chief executive Sundar Pichai as stating. “Our investment in mobile now underlines everything that we do today, from search and YouTube to Android and advertising.”
As reported by the WSJ, Alphabet stock rose 4 per cent in after-hours trading.
“Our terrific second quarter results, with 21 per cent revenue growth year-on-year, and 25 per cent on a constant currency basis, reflect the successful investments we’ve made over many years in rapidly expanding areas such as mobile and video,” Ruth Porat, Alphabet CFO, commented.
“We continue to invest responsibly in support of our many compelling opportunities.”