Alphabet, Google’s parent company, today reported its quarterly results. The results were ahead of analyst estimates with revenues of $69.8 billion, up 3% year over year. The company said that it will repurchase up to an additional $70.0 billion of its Class A and Class C shares. Also, for the first time, Google Cloud unit reported positive net income. Google Cloud revenue increased to $7.4 billion and net income was $191 million.
On the positive side, Google Search revenue returned to growth at 1.87% and YouTube revenue was down only by 2.56%. However, Other bets revenue was down 35%.
Sundar Pichai, CEO of Alphabet and Google, said: “We are pleased with our business performance in the first quarter, with Search performing well and momentum in Cloud. We introduced important product updates anchored in deep computer science and AI. Our North Star is providing the most helpful answers for our users, and we see huge opportunities ahead, continuing our long track record of innovation.”
Ruth Porat, CFO of Alphabet and Google, said: “Resilience in Search and momentum in Cloud resulted in Q1 consolidated revenues of $69.8 billion, up 3% year over year, or up 6% in constant currency. We remain committed to delivering long-term growth and creating capacity to invest in our most compelling growth areas by re-engineering our cost base.”