Despite coronavirus pandemic ravaging businesses after businesses, Googles parent company Alphabet logged $41.2 billion in first quarter (January-March period) sales, beating Wall Street expectations of $40.3 billion and earning $6.8 billion in profit.
Advertising sales made up 82 per cent of Alphabet’s total revenue with $33.8 billion, up from $30.6 billion last year.
Alphabet shares were up 4 per cent after the company reported its first quarter earnings.
“Given the depth of the challenges so many are facing, it’s a huge privilege to be able to help at this time,” Sundar Pichai, Chief Executive Officer of Alphabet and Google, said in a statement late Tuesday.
“People are relying on Google’s services more than ever and we’ve marshalled our resources and product development in this urgent moment,” Pichai added.
Google’s “other revenue” segment logged $4.4 billion in revenue – compared to $3.6 billion a year ago while YouTube revenue soared 33 per cent to $4 billion.
Google Cloud saw a jump of over 55 per cent to log $2.8 billion in revenue for the quarter.
“Our business, led by Search, YouTube, and Cloud, drove Alphabet revenues to $41.2 billion, up 13 per cent versus last year, or 15 per cent on a constant currency basis,” said Ruth Porat, Chief Financial Officer of Alphabet and Google.
“Performance was strong during the first two months of the quarter, but then in March we experienced a significant slowdown in ad revenues,” Porat added.
The second quarter is going to be very difficult as there is a downturn in the global web advertising market and according to industry experts, Google’s ad business is going to take a hit over the next three months.
“We are sharpening our focus on executing more efficiently, while continuing to invest in our long-term opportunities,” said Porat.