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Alphabet saw its revenue dip due to the pandemic

Though advertising money pretty much disappeared everywhere, Google still made money from its Cloud products. “Customers are choosing Google Cloud to either lower their costs by improving operating efficiency, or to drive innovation through digital transformation,” Pichai said. The shift to working from home also led to a growth in use of Google’s cloud services.…

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Published on July 31, 2020

Beyond advertising and Cloud revenue, Pichai said the company saw “good traction in areas such as YouTube subscriptions, Google Play and YouTube premium music and TV subscriptions performed well during the quarter.” App and game downloads are up 35 percent year over year, Pichai added. Clearly, people are continuing to use their phones and going to YouTube for entertainment as they remain at home.

Pichai also gave a shoutout to the hardware team, saying he was excited for new devices coming this fall. It’s been more than a year since Google launched its midrange Pixel 3a phone, and we’ve been waiting for the much-anticipated Pixel 4a for months. Today, the company teased that a device was coming soon by plastering its own social media channels with playful images.

Alphabet also saw money come in through its Other Bets division. That segment made $148 million this quarter, “primarily generated by Fiber and Verily,” according to Chief Financial Officer Ruth Porat.

Looking forward, Porat said revenue had gradually improved during the quarter, but that “it’s premature to gauge the durability of recent trends.” Based on her estimates, though, Porat said there were modest improvements in July. “We remain optimistic about the underlying strength of our business,” she added.

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