Alphabet, the parent company of Google, reported Q1 results that exceeded the estimates of market analysts. The company reported $69.79 bn in revenue this quarter, resulting in a 4 pc increase in its stocks. Earlier, analysts had estimated the revenue at $68.95 bn, but Alphabet managed to surpass it by 3 pc with a net profit of $16.44 bn.
Highlights from Alphabet’s earnings
- Revenue: $69.7 bn
- EPS: $1.17
- Google Ad Revenue: $54.55 bn
- YouTube Ad Revenue: $6.69 bn
- Google Cloud revenue: $7.45 bn
- Traffic acquisition costs (TAC): $11.72 bn
Google Ad Revenue witnessed moderate drop and posted $54.55 bn in Q1 against $59 bn in Q4 2022.
The net income was $15.05 bn, $23.5 bn in cash from operations and $41 bn in Google search revenue.
As part of its earnings announcement, Alphabet additionally said its board has authorized a $70 bn share buyback. Alphabet additionally reported charges related to its efforts to cut costs, including $2.6 bn in charges linked to layoffs and cutbacks on office space.
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.”