Image: Paweł Czerwiński via Unsplash
Alphabet reported its Q1 earnings today with revenue jumping 34% over last year exceeding analysts’ estimates for the first quarter of 2021. In a welcome sign to the ad world, Alphabet reported that advertising revenue rose to $44.68 billion for the quarter from $33.76 billion in the same quarter last year. That jump marks the fastest annualized growth rate in four years.
The company additionally announced a new $50 billion stock buyback, which sent shares up more than 4% in after-hours trading.
“Over the last year, people have turned to Google Search and many online services to stay informed, connected and entertained,” said Alphabet CEO Sundar Pichai. “We’ve continued our focus on delivering trusted services to help people around the world. Our Cloud services are helping businesses, big and small, accelerate their digital transformations.”
In Q1 2021, YouTube ad revenue was $6 billion which marks nearly 50% year over year, while Cloud reported $4.05 billion vs. $2.78 billion previously.
Search was a big winner again for the company, with $31.9 billion in sales, compared to $24.5 billion in the same quarter last year.
“Google other revenues” — which account for hardware, Play Store, and non-advertising YouTube revenues rose to $6.5 billion, compared to $4.4 billion the same quarter last year.
The closely-watched “Other Bets” continues to lose money. It reported $198 million revenue primarily generated by Verily and Fiber from $135 million in Q1 of 2020. However, it lost $1.15 billion compared to $1.12 billion in the same quarter of last year.
“Total revenues of $55.3 billion in the first quarter reflect elevated consumer activity online and broad based growth in advertiser revenue. We’re very pleased with the ongoing momentum in Google Cloud, with revenues of $4.0 billion in the quarter reflecting strength and opportunity in both GCP and Workspace,” said Ruth Porat, CFO of Google and Alphabet
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