Google parent Alphabet Inc. reported record quarterly revenue and profit on Tuesday, powered by a surge in advertising spending amid more consumers shopping online, and beat analysts’ estimates for both metrics.
Shares of Alphabet rose 5 per cent in extended trading.
The digital ad market is booming, with consumers shifting to shopping largely online owing to the pandemic, leading companies to rely on data gathered from customers’ orders and online activity to launch new products and know their market better.
Alphabet said revenue from Google advertising rose nearly 70 per cent to US$50.44-billion.
Ad revenue for the company’s streaming video platform YouTube jumped 83.7 per cent from the year-ago quarter to US$7-billion, as advertisers continued to used the site to reach viewers at home during the coronavirus pandemic.
Total revenue of the internet’s biggest supplier of search and video ads rose 61.6 per cent to US$61.88-billion, well above Wall Street estimates of $56.16-billion, according to IBES data from Refinitiv.
Net income during the quarter was US$18.5-billion, surpassing the previous record of US$17.9-billion in first quarter.
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