Alphabet topped earnings and revenue estimates

Google’s parent company, Alphabet (GOOG)(GOOGL), announced its fiscal 2Q17 results on Monday, July 24. The company posted higher revenue and earnings than expected by Wall Street.

The search engine giant’s earnings for 2Q17 were $5.01 per share, down 28% from the same quarter last year. This fall was due to the $2.7 billion antitrust fine charged by the European Union last month. Google said that, if not for the massive fine, it would have earned $8.90 per share. However, the company still managed to beat analysts’ EPS (earnings per share) expectations of $4.83.

How Alphabet’s Antitrust Fine Affected Its Earnings

The company’s quarterly revenue rose 22% from the same quarter last year, to $26 billion. Last year, the company earned $7 per share on revenue of $21.5 billion. As the graph above shows, the revenue growth of the company has been robust, despite the size of the company. Alphabet’s annual revenue growth has accelerated steadily, from 12.2% in fiscal 3Q15 to 22% in fiscal 2Q17.

Google’s cloud business is galloping

Google’s other revenue, excluding advertising and including the Google Play Store and the cloud business, grew 42% from 2Q16 to $3.1 billion. The Other segment now makes up 12% of the company’s total revenue. The company’s employee count rose from 66,575 in fiscal 2Q16 to 75,606 in 2Q17.

The company’s stock slipped 3.1% to $967.45 in after-hours trading on Monday as investors booked profits. The tech behemoth’s shares had soared by more than 24% year-to-date as of Monday’s close. Keep reading for more on Google’s results, including ad revenue and its cloud business.

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