The tech giant beat quarterly earnings and revenue expectations by a wide margin on Monday after the close, sending shares up as much as 5%.
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Alphabet reported adjusted EPS of $11.75 per share vs. $9.64 expected by analysts. Excluding traffic acquisition costs (revenue-sharing payments), revenue came in at $26.2 billion, above a $25.58 billion consensus. Including a massive $5.1 billion fine issued by the EU that the company plans to appeal, Alphabet's EPS was $4.54.
Revenue rose 26% in dollars and 23% in constant currency, according to the company. Paid ad clicks on Google's own sites and apps rose an impressive 58% year over year, nearly on par with Q1's 59% growth, with mobile search and YouTube the main drivers here.
This increase more than offset a 22% drop in cost per click (average ad price) for Google. YouTube, along with a mix shift from PC to mobile search ads, have been the main culprits.