May 18, 2021

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Earnings of Alphabet (GOOGL) Q1 2021

Earnings of Alphabet (GOOGL) Q1 2021

Alphabet reported huge beats on highs and profits for the first quarter of 2021, as well as a new $ 50 billion share buyback, which increased the stock by more than 4% in after hours trading.

Here’s how Google’s parent company fared in the quarter compared to what Wall Street analysts interviewed by Refinitiv expected:

  • Earnings: $ 26.29 per share vs. Expected $ 15.82 per share
  • Income: $ 55.31 billion vs. 51.70 billion dollars expected
  • Google Cloud Revenue: $ 4.05 billion vs. $ 4.07 billion, according to FactSet estimates.
  • YouTube Ads: $ 6.01 billion vs. $ 5.70 billion, according to StreetAccount.
  • Traffic Acquisition Costs (TAC): $ 9.71 billion vs. $ 9.25 billion, according to FactSet estimates.

Google’s revenue increased 34% over the same period last year. The company posted advertising revenue of $ 44.68 billion for the quarter. That’s a significant increase from $ 33.76 billion in the same quarter last year, making it the fastest annualized growth rate in at least four years, although the results have been spurred on by easy comparisons, since the start of the coronavirus pandemic caused a sharp drop in advertising. spend.

YouTube ads totaled $ 6.01 billion during the quarter, a 49% increase from a year ago.

YouTube has become the pandemic winner in terms of social media sites, according to a recent Pew report, according to which the video platform has seen usage grow from 73% of U.S. adults in 2019 to 81% in 2021.

Alphabet CEO Sundar Pichai said on the company’s earnings that YouTube competitor Shorts TikTok is garnering 6.5 billion daily views, a significant increase from 3.5 billion at the end of January.

Google Cloud revenue increased 46% year-on-year to $ 4.05 billion, in line with Wall Street expectations. It lost $ 974 million during the quarter, significantly reducing losses from the same period a year ago. Google Cloud includes data analytics infrastructures and platforms, collaboration tools such as Google Docs and Sheets, and “other services for business customers”.

The company’s “Other Bets” segment, which includes its health technology unit Verily and the Waymo autonomous vehicle bet, lost $ 1.15 billion on revenues of $ 198 million.

On April 23, Alphabet’s board of directors approved a further share buyback of up to $ 50 billion, it said on Tuesday.

In March, Google announced a $ 7 billion investment to expand offices and data centers in 19 states, creating at least 10,000 full-time jobs. This came when the company doubled down by bringing its workforce back to physical offices after the pandemic.

The company will discuss the results with investors at 5pm ET.

This story is developing. Please check back for updates.

– CNBC’s Jessica Bursztynsky contributed to this report.