Google parent company Alphabet reported another excellent quarter yesterday in its investor call for the period ended June 30, 2017. Even the $2.74 billion fine imposed on the company by the European Commission caused hardly any concern by analysts on the call.
Alphabet announced just prior to the call that Google CEO Sundar Pichai was appointed to Alphabet’s board of directors. Pichai joined Google in 2004. In 2014 he took over product, engineering, and research efforts for all of Google’s products and platforms. He became Google’s CEO in August 2015.
“Sundar has been doing a great job as Google’s CEO, driving strong growth, partnerships, and tremendous product innovation,” said Larry Page, CEO of Alphabet, in a statement.
For its earnings, Alphabet reported revenues of $26 billion, up 21 percent compared to the same quarter in 2016.
Pichai said Google Cloud Platform (GCP) saw impressive growth. “In Q2 the number of new deals we closed worth more than half a million dollars is three times what it was last year,” he said.
He also said Google continues to invest in data centers, opening new GCP regions in Virginia, Singapore, Sydney, and London. And he called out Google’s recent partnerships with SAP and Nutanix to integrate their products with GCP.
SAP recently made its SAP Cloud Platform available on GCP via the Cloud Foundry open source software. And in June Google and Nutanix partnered to allow customers to move on-premise workloads to GCP and manage applications between GCP and Nutanix cloud environments.
The company also increased its headcount, largely to support GCP, which is one of its fastest growing business segments. It reported its total number of employees was 75,606 at the end of the quarter, up from 66,575 year-over-year. The vast majority of new hires were engineers and product managers, said Alphabet CFO Ruth Porat. The most sizable headcount additions were “once again made in cloud for both technical and sales roles consistent with the priority we place on this business,” she said.
An analyst asked Pichai if there were any commonalities in the types of workloads customers were choosing GCP for, and he said, “We are actually seeing quite a diverse set of use cases across sectors and industries and geographies and so, I would say the breadth of what we have seen, it’s really surprised me.”
During the quarter, on June 27, the European Commission found that some Google rankings of shopping search results and ads infringed European competition law. And the EC imposed a $2.74 billion fine, which the company accrued in the second quarter of 2017.
Porat said on the call, “We are still early in our analysis of the decision and the right next steps, and we do have time to notify the commission of proposed remedies as well as implement changes.”