Alphabet, the parent company of Google, reported a massive jump in profits Thursday from strong advertising revenue growth on both desktop computers and mobile devices.
Analysts once feared what the smartphone revolution would mean for the company's core advertising business. But Alphabet appears to be handling the transition to mobile devices well, thanks in part to its presence on Android and iOS devices. The company said about half of all searches are now done on mobile gadgets. Advertisers continue to buy more ads across devices to serve the enormous audience of its largest division, Google.
Profit grew 24 per cent overall in the second quarter over the same time last year. Shares climbed nearly 5 per cent in after-hours trading, up from the company's close of $745.91 a share.
Google itself reported revenue of $21.3 billion, up from $17.7 billion at the same time last year. Alphabet as a whole reported revenue of $21.5 billion and $4.9 billion in profit. The firm reported earnings per share of $8.42. That beat analyst expectations of $20.8 billion in revenue and profit of $3.9 billion, or $8.04 per share.
Ruth Porat, Alphabet's chief financial officer, said in a statement that the results "reflect the successful investments we've made over many years in rapidly expanding areas such as mobile and video."