[ad_1]
Alphabet, one of Google’s fathers, reported record results on Tuesday as the pandemic kept people at home, watching YouTube videos and clicking on the company’s web ads.
It also announced a $ 50 billion share repurchase program, which helped send its shares up 4.5 percent in out-of-hours trading. This gave the tech giant a market 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 rose to $ 55.3 billion, Alphabet said: 34% more than $ 41.2 billion and easily exceeds expectations of $ 51.6 billion. Net income rose 162% to $ 17.9 billion, compared to a consensus of analysts’ forecasts of $ 10.5 billion, according to Visible Alpha’s calculation.
“People have resorted to Google Search and many online services to stay informed, connected and entertained,” said Sundar Pichai, chief executive of Alphabet.
Chief Financial Officer Ruth Porat said the figures “reflect high online consumer activity and broad advertising revenue growth”.
Google’s main search business revenue rose 30% to $ 31.9 billion. The group said retail ads paved the way thanks in part to searches “available near me” and “margin pickup,” with groups such as Dick’s Sporting Goods doubling its e-commerce business amid pandemic.
YouTube revenue grew 49%, to $ 6 billion, and business CEO Philipp Schindler told investors that Google “still scratches the surface of what is possible” to turn the video channel into a platform for advertising big brands.
“Historical approaches to reaching the public through traditional television no longer work,” he said. “Advertisers are using YouTube now to reach audiences they can’t find anywhere else.”
After the quarter, Alphabet earned $ 135 billion in cash. Its new $ 50 billion repurchase scheme doubles the size of its last authorization in 2019.
By region, Alphabet’s revenue soared 44% in Asia, 33% in the United States and 25% in Europe, the Middle East and Africa during the first quarter.
Revenue from the non-Google search business, including the Android app market and hardware, such as Pixel phones and smartphones, rose 46 percent to $ 6.5 billion.
The company’s Google Cloud unit, a third-party cloud service provider after Amazon and Microsoft, added $ 4 billion in revenue, up 45.6%. While the unit continues to produce losses, losses were reduced to $ 974 million, from $ 1.73 million years ago.
Overall results indicate that Porat maintains a narrow tab on operating costs and expenses, which only rose 17% to $ 38.9 billion, $ 1 billion less than analysts had predicted. Sales, marketing and administration costs were flat, which helped flatten operating margins from 19% a year ago to 30%.
Similarly, “Other Bets,” where Alphabet houses groups such as driverless vehicle business Waymo, life sciences researcher Verily and its “moon factory” X, spent $ 1.14 million of dollars, only 2% more than a year ago. Meanwhile, revenues from these emerging companies rose 47% to $ 198 million.
Pichai said Alphabet would plan to invest more than $ 7 billion in U.S. offices and data centers this year, creating “at least 10,000 new full-time jobs.”
[ad_2]
Source link
