AlphabetThe home company Google and YouTube, reported a stronger increase in the first quarter on Thursday after the bell. Actions increased by more than 5% in trade after hours.
Here's how the company, compared to the estimates of analysts surveyed by LSEG:
- Income: It is estimated that $ 90.23 billion vs. USD 89.12 billion
- Profit per share: Established 2.81 USD vs. USD 2.01
Wall Street also observes several other numbers in the report:
- Revenues from YouTube advertising: USD 8.93 billion compared to USD 8.97 billion, according to Streetaccount
- Google Cloud Revenue: $ 12.26 billion compared to USD 12.27 billion, according to Streetaccount
- Traffic acquisition costs (TAC): USD 13.75 billion compared to USD 13.66 billion, according to Streetaccount
Alphabet search and advertising units still show a strong increase despite heating AI competition, according to its earnings in the first quarter report.
The company's overall revenues increased by 12% year -on -year, higher than 10% Wall Street.
Google's revenues from YouTube's advertising were not included in the expectation of analysts of $ 8.93 billion. General advertising brought $ 66.89 billion, which is an increase of 8.5% compared to the previous year.
The “search and other” segment recorded $ 50.7 billion – by 9.8% from USD 46.16 billion a year earlier. Alphabet said that the AI review, his AI tool placed at the top of the Google search results page, currently has 1.5 billion users per month, compared to 1 billion in October.
Philipp Schindler, head of Google's business, said that the company “is not resistant to the macro environment”, adding that President Donald Trump's decision to end The de minimis trading gap next month “will be caused by a small wind in our advertising activity in 2025, primarily from retail sellers from APAC.”
De miniis trade dismissal allows shipments with a value less than USD 800 to enter an American service free of service, a key part of Chinese companies of e-commerce ago and Shein, which previously published broadly in online advertising. The exemption is to be closed on May 2.
“I would say that we have extensive experience in managing uncertain times and we focus on helping our clients, providing a deep view of the change in consumer behavior that are important for their activities,” said Schindler.
Schindler said that finances, retail, health care and travel were among the best industries advertising with Google, helping to increase revenues.
Alphabet net income increased by 46% to USD 34.54 billion, i.e. USD 2.81 per share, from USD 23.66 billion, i.e. USD 1.89 per share, a year earlier. The company said that this covered $ 8 billion of unrealized profits from the unchanging capital securities related to the Alphabet investment in a private company.
According to Streetaccount, the company reported revenues of $ 12.26 billion for activities in the field of calculations in the cloud, which was slightly below the expectations of analysts of $ 12.27 billion. But the cloud unit recorded an increase in revenues by 28% year on year, and the margins amounted to 17.8%, compared to 9.4% a year ago.
Alphabet made the greatest takeover in March, when Agreement To buy visas for $ 32 billion in cash, almost $ 10 billion more than offered at the startup in 2024 and said that he expected the contract to be closed next year, subject to regulatory approvals. With the takeover of Google, he will try to strengthen the safety offer of his department in the cloud.
“We think that this will help stimulate more computers with many clouds, which our clients want,” said Sundar Pichai, general director of Alphabet, Sundar Pichai about taking over with analysts on Thursday.
The company announced that its segment of “other factories”, which includes the self -propelled car unit Waymo and Life Sciences, brought $ 450 million, which is 9% of $ 495 million a year earlier. The unit lost USD 1.23 billion – compared to USD 1.02 billion a year earlier.
Alphabet said Waymo provides over 250,000 fully autonomous paid rides a week in the San Francisco, Los Angeles, Phoenix and Austin regions. It increased from 200,000 in February before the service opened Austin and wider San Francisco Bay Area.
“Waymo is still developing based on impressive technological achievements to quickly scale and develop a sustainable business model,” said CFO Alphabet Anat Ashkenazi on Thursday.
Ashkenazi also said that the company is still expecting to invest approximately $ 75 billion This year, this year, but provided for “the level of investment may change from quarter to quarter due to the impact of changes in delivery dates and construction schedules.”
Alphabet also said that his management board authorized him to redeem an additional $ 70 billion of shares, just like a year ago.
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