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Google’s Alphabet parents gave record results on Tuesday as the pandemic kept people at home by watching videos on Youtube and clicking on ads advertised by the company.
He also announced a $ 50 billion share purchase program to help him issue up to 4.5 percent of his shares in post-trading hours. This gave the technology giant a capitalization of more than $ 1.6 million for the first time. Only Apple, Microsoft and Amazon are bigger.
Gross revenue for the first three months of this year was $ 55.3 billion, Alphabet said: It rose 34 percent to $ 41.2 million and easily exceeded expectations of $ 51.6 million. Net income rose 162 percent to $ 17.9 billion, and analysts agreed to forecast $ 10.5 billion, Visible Alpha estimates.
“People have turned to many Google Search and online services to stay informed, connected and entertained,” said Sundar Pichai, CEO of Alphabet.
Chief Financial Officer Ruth Porat said the figures “reflect the large online consumer activity and broad-based revenue growth.”
Google’s basic search business revenue rose 30% to $ 31.9 billion. The group said retail ads have been driven in part by “near” and “kerbside pick-up” searches, with groups such as Dick’s Sporting Goods doubling its e-commerce business. pandemic.
YouTube’s revenue grew 49 percent to $ 6 billion, and business director Philipp Schindler told Google investors that it was “still scratching the surface of what is possible” to turn the video channel into a high-brand advertising platform.
“Historical approaches to reaching the audience (traditional television) no longer work,” he said. “Advertisers are now using YouTube to reach an audience they can’t find anywhere else.”
After the quarter, Alphabet was sitting on $ 135 billion in cash. The new $ 50 billion repurchase scheme is double the last permit issued in 2019.
By region, Alphabet’s revenue rose 44 percent in Asia, 33 percent in the U.S. and 25 percent in Europe, the Middle East and Africa in the first quarter.
Google’s revenue from non-search businesses, including the Android app market and hardware, such as Pixel phones and smart speakers, rose 46 percent to $ 6.5 billion.
The company’s Google Cloud unit – a third-party remote local cloud service provider after Amazon and Microsoft – added $ 4 billion in revenue, up 45.6 percent. Although the unit continues to make losses, losses were reduced to $ 974 million from $ 1.73 million a year ago.
Overall, Porat maintains a narrow tab on operating costs and expenses, which rose only 17 percent to $ 38.9 billion, $ 1 billion less than analysts forecast. Sales, marketing, and administration costs were flat, helping to equal operating margins from 19% to 30% a year ago.
Also, “Other Bets,” where Alphabet spent the business of driverless cars, including Waymo, a life science researcher on Verily and its “moonshot factory” group X, spent $ 1.14 million, up from a year 2 more. Meanwhile, revenues from these emerging businesses rose 47 percent to $ 198 million.
Pichai said Alphabet plans to invest more than $ 7 billion this year in U.S. offices and data centers, “creating at least 10,000 new full-time jobs.”
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