Alphabet beat investor expectations for the second quarter in a row, delivering a 7.1% year-over-year revenue increase.
Advertising revenue was up 3.3% year-over-year, with a 4.8% increase in Search and a 4.4% increase in YouTube ads, partially offset by revenue from Google’s broader advertising network dropping by 5%.
There was also significant growth in Google’s cloud business and the “other” segment, which includes units like Waymo self-driving vehicles and non-advertising related revenue from YouTube. Growth in both of those divisions led to revenue that topped what YouTube ads and the Google Audience Network brought in last quarter.
While Alphabet is still recovering from advertiser pullback last year, it said that spending has “stabilized” on YouTube, with an increase in both brand and direct response ads. The growth in search ads was attributed to increases from retail advertisers.
Despite the second consecutive quarter of better-than-expected results, Alphabet has also undergone cost-management efforts, which have included layoffs and reducing its real estate footprint. So far this year, Alphabet has taken $2 billion USD in employee severance charges, along with $633 million USD in real estate related charges.