Dive Brief:
- Revenue at Google's parent company Alphabet rose 21% year over year for the quarter that ended June 30, reaching $26 billion, according to an Alphabet press release. Despite beating estimates for revenue and profit, the company's stock was down 3% in late trading on Monday, according to Business Insider. Revenues from Alphabet's other revenues, which includes Google's cloud businesses, were $3.09 billion in Q2, up from $2.17 billion in the year-ago quarter.
- Alphabet's Q2 results included a fine of €2.42 billion from the European Union for anti-competitive practices related to how the company ranks products in Google’s shopping feature.
- Alphabet also announced that Google CEO Sundar Pichai is joining the board of Alphabet. Pichai joins Diane Greene, Google's cloud leader, as the second Google seat on the board.
Dive Insight:
Alphabet doesn't do a good job of separating out its revenues in its earnings reports, but given growing enterprise demand for cloud services, cloud sales contributed generously to the $3 billion other revenues the company earned last quarter.
Google has been fighting hard to get traction in the enterprise cloud market, and the latest earnings seem to indicate it's on a steady growing spree.
The company continues to add new cloud services and form new strategic cloud partnerships. But despite the effort, Google does not appear to be seeing the same cloud growth rate currently enjoyed by Amazon Web Services (AWS) and Microsoft. Last week, Microsoft announced its Azure cloud revenue increased 97% year over year, according to CNBC. Microsoft's commercial cloud annualized run rate is now at $18.9 billion.
