Alphabet posts $69.7B in rev, $54.55B from Google advertising in Q1
The company announced that it will be buying back $70 billion in shares
Google parent Alphabet Inc posted the company’s earnings for the quarter ended March 31, stating that it has surpassed expectations for top and bottom lines. The company also said that it will be buying back $70 billion in shares.
Alphabet reported in $69.79 billion in revenue this quarter, up 3% and surpassing expectations of $68.95 billion. Net profit stood at $16.44 billion.
The net income was $15.05 billion, $23.5 billion in cash from operations and $41 billion in Google search revenue.
In the first quarter, revenue from Google advertising was $54.55 billion with a slight dip from the year earlier, from YouTube ads was $6.6 billion and Google Cloud was $7.45 billion. YouTube saw a 2.5% drop in ad sales, the second drop in consecutive quarters.
Shares for Alphabet rose 4% as investors welcomed the company’s decision to buy back stocks. Earnings per share was reported at $1.17, surpassing the estimate of $1.07 per share.
Alphabet said that it is keeping control of costs amid recession fears, which resulted in the slashing of 12,000 jobs in January.
The company is at present locked in a race with Microsoft in rolling out AI-powered software to respond to queries, especially after the latter’s acquisition of ChatGPT.
Sundar Pichai, CEO of Alphabet and Google, said: “We are pleased with our business performance in the first quarter, with Search performing well and momentum in Cloud. We introduced important product updates anchored in deep computer science and AI. Our North Star is providing the most helpful answers for our users, and we see huge opportunities ahead, continuing our long track record of innovation.”
Ruth Porat, CFO of Alphabet and Google, said: “Resilience in Search and momentum in Cloud resulted in Q1 consolidated revenues of $69.8 billion, up 3% year over year, or up 6% in constant currency. We remain committed to delivering long-term growth and creating capacity to invest in our most compelling growth areas by re-engineering our cost base.”
