Google’s parent company, Alphabet, said Tuesday that sales were up sharply in the last quarter compared to the same period last year, reflecting strong demand for online advertising in search results and YouTube videos, as well as continued growth in cloud computing. Area.
Alphabet had sales of $ 55.31 billion, up 34 percent year over year, and net income more than doubled to $ 17.93 billion in the first quarter. It was the third quarter in a row with record earnings for the company. The results exceeded the analysts’ expectations. Alphabet’s shares rose more than 4 percent in after-hours trading.
Like the other technology conglomerates, Alphabet did well during the pandemic. After a decline in travel-related advertising in the early months of the pandemic, Google’s advertising business has enthusiastically rebounded. Businesses spend money on Google to target customers who spend more time online.
Ad revenue rose 32 percent for the quarter, driven by strong demand for search engine marketing. Alphabet also earned $ 6 billion in YouTube ads, up 49 percent.
The results again demonstrated the continued strength of Google’s online real estate, which – at least financially – remains unaffected by regulatory pressure and a multitude of antitrust lawsuits.
On a conference call with analysts, Ruth Porat, Alphabet’s chief financial officer, said the company benefited from “increased online activity” during the quarter but cautioned that once lockdown restrictions are lifted and up, the trend may not continue the economies recover.
Google’s cloud computing business has grown more customers during the pandemic as companies moved more data to centralized data centers to save money and become more digitally flexible. Cloud revenue grew 46 percent, while first-quarter losses decreased to $ 974 million. In the cloud business, Google is still a distant third of Amazon and Microsoft.
Alphabet’s results were also helped by the tightening of the belt during the pandemic. The company’s selling and marketing expenses were flat, although sales rose $ 14 billion and general expenses decreased year over year. The lower costs were also seen as Google continued to hire new employees. Alphabet increased its workforce by almost 17,000 to around 140,000 employees worldwide.