Google’s parent company narrowly topped revenue and profit expectations, driven by its search engine, while growth in YouTube ad sales fell short.
Google faced a setback on Monday when the cybersecurity start-up Wiz rejected its $23 billion acquisition offer, a deal that could have given momentum to its cloud-computing operations.
On Tuesday, Google’s parent company Alphabet reminded investors that it’s doing just fine even without the deal.
The tech giant reported strong revenue growth in its search advertising business and a rising profit, though the increase in YouTube ad sales fell short of expectations.
In the second quarter, Alphabet posted $84.7 billion in quarterly sales, up 14 percent from a year earlier and narrowly exceeding analysts’ estimate of $84.1 billion, according to data compiled by FactSet.
The company’s profit climbed 29 percent, to $23.6 billion, beating Wall Street’s expectation of $22.7 billion.
The results reminded investors of the stability of Google’s advertising-fueled consumer services, which are used by billions of people, even as the company searches for additional sources of revenue.