While the company managed to beat its own projections in light of the COVID-19 pandemic, it experienced its first downward quarter year over year since it went public in almost 16 years ago.
Google parent Alphabet's quarterly sales fell for the first time in its 16 years as a public company, but the 2% slide was less than expected as many advertisers stuck with the world's most popular online search engine during the pandemic.
Alphabet announced a US$28 billion boost to its share buyback program. That's down from the $31.7 billion reported in Q2 2019, but a smaller dip than Wall Street had predicted as the coronavirus crisis wreaks havoc on the advertising industry.
Yes, but: Despite beating expectations on revenue, the company still reported its first-ever decline, thanks to a reduction in the advertising growth rate thanks to the coronavirus pandemic. Both then and now, the company's business suffered from shrinking advertising budgets.More news: Iran's IRGC Launches Exercises Near Key Waterway For Oil Transport
Prior to the pandemic, YouTube was Google's fastest growing ad offering. The stock rose slightly in extended trading.
Search ad sales at the end of June were about flat with a year ago, marking an improvement from a "mid-teens" percentage decline in March, Alphabet chief financial officer Ruth Porat told the analysts.
"We are cautiously encouraged by our results for the second quarter, although mindful of the fragile global economic environment", Porat said. Meanwhile Cloud was an expected "bright spot" for Google.
Alphabet's overall second-quarter revenue was $38.3 billion, down 2% from the same time previous year.More news: Game Over: Saudi Arabian Takeover Of Premier League Newcastle United Called Off
"Although we still expect the pace of headcount growth to decelerate somewhat in 2020, we're continuing to hire aggressively in priority areas like cloud", Porat said. Alphabet cut its marketing costs by half, instituting hiring freezes for the second half of the year, according to a CNBC report.
Pichai and the CEOs of Apple, Amazon and Facebook yesterday were grilled by USA congressmen during a hearing on their online platforms' market power and dominance held by the House Committee on the Judiciary's Subcommittee on Antitrust, Commercial and Administrative Law.
Here are the results compared to Bloomberg estimates. Lawmakers grilled Pichai on how Google "stole" content, favored its own products, and whether it should spin out YouTube.More news: Industry tracker: Huawei overtakes Samsung as top smartphone seller