Bigger Revenues, Losses at Alphabet's 'Other Bets' in Q1
- Author: Zachary Reyes May 06, 2017,
May 06, 2017, 17:22
Alphabet's stock has soared this year, pushing it above a U.S. $600 billion market cap this week for the first time, the report said. First-quarter profit rose 29% to $5.43 billion, or $7.73 a share, from $4.21 billion in the same quarter a year ago.
"Our excellent results represent a terrific start to 2017, with revenues up 22 per cent versus the first quarter of 2016 and 24 per cent on a constant currency basis".
For the first-quarter, Google delivered a jump in their earnings by 28% attributing to the company's shares crossing the 900 level during the after-hours trading. Year-to-date, GOOGL has gained 12.49%, versus a 7.21% rise in the benchmark S&P 500 index during the same period. The paid clicks increase beat analyst expectations of a 29.7% increase, per a report from Reuters. "Many of the Alphabet companies are already using this technology and are planning to use it even more".
Revenue at Google increased by 22.2% to end the quarter to $24.75 billion compared to $20.25 billion for the same quarter one year ago.
But Alphabet of course has its fingers in a lot of different ventures, including its "Other Bets" unit which compromises its Waymo self-driving auto business, Google Fiber, thermostat-maker Nest and the life sciences firm Verily.
Alphabet chief financial officer Ruth Porat claimed that the fast-rising advertising revenues enabled Google to channel investment into other activities, especially cloud and hardware. Google site revenues were $17.4 billion (up 21 percent), and network revenues were $4 billion (up 9 percent).
Revenue at Google, which comes from things like search ads, display ads, and advertising on YouTube videos, came in at $24.75 billion, a 22 percent jump from the same period a year ago.
Alphabet CEO Larry Page released a letter Thursday defending the two-year-old Alphabet structure, which he said had achieved its objective of giving investors greater visibility into Google's performance while empowering entrepreneurs in other parts of the company.
Traffic-acquisition costs are what Google pays partner websites to carry ads. But it also posted an $855 million operating loss (up 10%).