According to foreign media techspot, no less than 85% of Google’s revenue still consists of advertising revenue, which is why the company has been striving to diversify beyond its core business. The company announced its second quarter revenue, which fell for the first time in 22 years due to the direct impact of covid-19 on advertising spending, but believes the worst is over.
in the three months to June, the company’s total revenue was $38.3 billion, down 2% from the same period in 2019. That didn’t surprise analysts, but it did exceed the expected $37.4 billion. Net income was $6.4 billion, which was also significantly lower than $9.9 billion in the same period last year. Google’s online traffic surged in April and may, but at the same time, advertisers cut back on search advertising, which began to improve in June.
Google is seeking to diversify beyond advertising, but its “other bets” category continued to struggle in the second quarter, resulting in a total loss of $1.12 billion. The highlights are youtube and its cloud division, which generate $3.81 billion and $3 billion in revenue, respectively.
in an investor conference call, Google CEO Sundar Pichai said that while the economic environment is still difficult, the company is confident that its hardware efforts will pay off in the coming quarters. “As people move more and more to online services, our platforms – from cloud computing to Google play to youtube – are helping our partners deliver important services and support their businesses,” Mr. picchay said
overall, the search giant seems confident in its ability to weather the storm, which has forced companies such as Uber, GoPro, LYFT, patreon, KickStarter, magic leap and at & amp; t to make ends meet. Google has successfully avoided layoffs by cutting marketing budgets and suspending hiring, and it will also allow employees to work from home for 12 months, which is likely to continue to save operating costs.