Google’s parent company saw sales increase in the first quarter, which could indicate that large IT companies can weather the coronavirus pandemic better than expected. Like Alphabet on April 28, 2020 after the close of trading on the New York Stock Exchange announced (PDF)revenue increased 13 percent to $ 41.2 billion. The analysts had expected sales of $ 40.8 billion.
Net income for the first quarter was $ 6.84 billion ($ 9.87 per share), compared to $ 6.66 billion ($ 9.50 per share) in the same period last year. The company's shares rose 3 percent in after-hours trading. Alphabet's operating income was $ 8 billion, compared to $ 6.6 billion in the prior-year period. Ads revenue from Google was $ 33.8 billion, an increase of approximately 10 percent over the first quarter of last year.
Google’s revenue has grown every quarter in its history. "People rely on Google’s services more than ever, and we’ve brought our resources and product development together in this moment of great importance.”said Sundar Pichai, head of Alphabet.
Still, Google showed signs of slowing down. Advertising revenue for search only increased by 9 percent, which was weaker than before. YouTube advertising revenue, a small but growing share of the company's revenue, performed better, up 33 percent.
The quarterly report contains only a few weeks of lockdown. Pichai told analysts that March "represents a significant and sudden slowdown in advertising revenue".
Google's cloud business had sales of $ 2.8 billion, up 52 percent from the previous year. About 5.5 percent of Alphabet's revenue last year came from cloud services.
Alphabet's total spending increased approximately 12 percent to $ 33.2 billion.