Alphabet reported $38.9 billion in revenue for the three months ending in June, above Wall Street’s $38.2 billion projection. That number was up 19% from the same quarter a year earlier.
The company also authorized a new $25 billion share buyback.
Alphabet’s previous quarter disappointed, as revenue increased by 17% from the prior year, missing Wall Street estimates. The company has developed a number of new business divisions, including cloud computing and hardware. But as its core advertising business matures, investors have begun to wonder whether those new areas of business can become as big as advertising is for Alphabet.
Advertising revenue for Google, which includes YouTube, grew 14% from the same period last year to $32.6 billion.
The most promising non-advertising business line has been cloud, which the company now projects to have an annual run rate of $8 billion. It is the third largest revenue driver for Alphabet, behind advertising and YouTube, Chief Financial Officer Ruth Porat said on a call with analysts following the earnings release.
Google CEO Sundar Pichai said the company recently broke ground on three new cloud data centers and launched its seventh cloud region in Asia Pacific in Osaka, Japan. Alphabet made another major investment in cloud last month with the $2.6 billion acquisition of business intelligence platform Looker.