Alphabet Reports First Revenue Decline in Company History
On Thursday, Google parent company Alphabet announced its first revenue decline in the company's history, according to CNBC.
However, the company did beat second-quarter earnings expectations. Shares barely moved in after-hours trading after the earnings announcement.
Here’s what Alphabet reported vs. Refinitiv consensus estimates:
- EPS: $10.13 (non-GAAP), vs. $8.21 estimated.
- Revenue: $38.30 billion vs. $37.37 billion estimated.
- YouTube advertising revenue: $3.81 billion vs. $3.78 billion, according to StreetAccount estimates
- Google Cloud revenue: $3.01 billion vs. $3.06 billion, as per StreetAccount
- Traffic acquisition costs (TAC): $6.69 billion vs. $6.67 billion, as per StreetAccount
Alphabet's board announced that it was authorizing $28 billion in repurchases of its Class C shares. As ad revenue continues to fade, Alphabet cut its marketing budget in half and instituted hiring freezes for the second half of the year. Revenue from Alphabet's other divisions such as its self-driving car division Waymo fell to $148 million from $162 million from the year prior.
“We believe it is premature to gauge the durability of recent trends, given the obvious uncertainty of the global macro environment,” CFO Ruth Porat said.