Google crushes 2nd quarter earnings expectations

San Francisco: Google parent Alphabet beat analyst expectations for the second quarter Thursday, sending its shares up sharply as it bounced back from a rough first quarter.

The company comforted investors with advertising revenue growth that edged out last quarter and assurances that video streaming site YouTube and the company's enterprise cloud business continue to drive growth. The Mountain View, California-based company brought in revenue of $38.9 billion during the second quarter, a 19 per cent bump from the same period last year.

The company reported profit of $14.21 per share, or $9.9 billion during the quarter, nearly triple what it made last year when it paid a $5.1 billion European Commission fine.

Analysts polled by FactSet were expecting Alphabet to report earnings per share of $11.10 on revenue of $38.2 billion during the second quarter.

Google's stock rose more than 9 per cent in after-hours trading after the earnings report was released. Investors and analysts had been disappointed by slowing advertising revenue growth Google's main cash cow after the first quarter. But their concerns didn't continue into the next quarter. Excluding advertising commissions that Google pays to customers, Alphabet's overall revenue was $31.7 billion.