Google Parent Company’s Q1 Net Profit Increased by 3% Year-on-Year to US $ 6.8 billion, after-hours stock price rose 8%

Google Parent Company’s Q1 Net Profit Increased NetEase Technology News April 29, according to foreign media reports, the US local time on Tuesday, Google parent company Alphabet released as of March 31, the first quarter of 2020 financial report.

Google Parent Company’s Q1 Net Profit Increased: The financial report shows that Alphabet ’s first-quarter revenue was 41.2 billion US dollars, an increase of 13% from the previous year ’s 36.3 billion US dollars; net profit was 6.8 billion US dollars, an increase of 3% from the previous year ’s 6.7 billion US dollars; earnings per share was 9.87 US dollars , Higher than last year ’s $ 9.50. After the financial report was released, Alphabet shares soared more than 8% after the market.

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The following are the highlights of Alphabet ’s first quarter earnings report:

Google Parent Company’s Q1 Net Profit Increased: Alphabet ’s first quarter revenue was US $ 41.2 billion, an increase of 13% from US $ 36.3 billion in the same period of the previous year, and higher than analysts ’average forecast of US $ 40.3 billion;Alphabet’s first quarter net profit was US $ 6.8 billion, an increase of 3% from US $ 6.7 billion in the same period last year, but lower than the market’s average expectation of US $ 7.2 billion;

Alphabet’s earnings per share for the first quarter were US $ 9.87, higher than US $ 9.5 in the same period last year, and also lower than the average analyst’s expectation of US $ 10.33;

Google Parent Company’s Q1 Net Profit Increased by 3% Year-on-Year

Google’s total advertising revenue accounted for 82% of Alphabet’s total revenue in the first quarter, increasing from US $ 30.6 billion in the same period last year to US $ 33.8 billion, an increase of 10% year-on-year. Among them, YouTube advertising revenue was US $ 4.04 billion, up 33% year-on-year;

Alphabet ’s cloud computing service revenue in the first quarter was US $ 2.78 billion, an increase of 52% compared to US $ 1.83 billion in the same period last year;

Alphabet ’s flow acquisition cost in the first quarter reached US $ 7.45 billion, an increase of 8.6% year-on-year, but lower than analysts ’previous average estimate of US $ 7.51 billion;

Alphabet’s “other revenue” (including hardware such as Pixel phones and cloud products) reached US $ 4.44 billion in the first quarter, compared with US $ 3.62 billion in the same period last year;

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Alphabet ’s “other bets” revenue in the first quarter was US $ 135 million, a 21% decline from the US $ 170 million in the same period last year, and a total loss of US $ 1.12 billion. “Other bets” include Alphabet’s self-driving car business Waymo and life sciences company Verily.

Sundar Pichai, CEO of Google and its parent company Alphabet, said on the earnings conference call: “Given that so many people are facing difficult challenges, it is an honour to be able to help at this time. People compare In the past, we have relied more on Google ’s services.

At this urgent time, we have mobilized all resources to support product development. As people look for information on the new coronavirus epidemic, search, YouTube, and other applications and services are used significantly Increase. However, even if user engagement increases, our advertising revenue is affected. ”

Ruth Porat, CFO of Google

Google Parent Company’s Q1 Net Profit Increased: Ruth Porat, CFO of Google and its parent company Alphabet, said: “Our business is dominated by search, YouTube and cloud computing, driving Alphabet revenue to 41.2 billion US dollars, an increase of 13% over last year. The performance in the first two months of this quarter was strong, but then in March, our advertising revenue fell sharply. We are more focused on improving execution efficiency while continuing to invest in our long-term opportunities. ”

Polat Cautiously and Optimistically Believed

Google Parent Company’s Q1 Net Profit Increased: In the earnings call, Polat cautiously and optimistically believed that the worst period had passed. She said: “Our search and other advertising revenues suddenly dropped in March.

Although we have seen many early signs of recovery indicating that users are returning to more business practices, it is not clear how long this situation will last, nor Know how much profit it can bring. “Borat refused to give detailed expectations for the second quarter results, saying only that it would be a” difficult quarter. ”

Google may be reduced from about US $ 4 billion in 2019

Google Parent Company’s Q1 Net Profit Increased: Mark Mahaney, an analyst at RBC Capital Markets, predicts that advertising spending on Google may be reduced from about US $ 4 billion in 2019 to 1 billion this year due to epidemic prevention measures such as travel restrictions To $ 2 billion. Must Read: Redmi 10x Launched Soon With MediaTek Helio G85 Chipset: Render and Amazing Feature leaks

James Cordwell, an analyst at Atlantic Equities, said: “YouTube provides an upward surprise. Although the lockout has affected the advertising budget, growth is actually accelerating.”

In terms of expenses, Polat said that as Alphabet reduces global office space and slows down the pace of buying office buildings, overall capital expenditures will appear to “moderately decline” in 2020. She also said that Alphabet has lowered its number of employees. The company previously expected that the number of employees will increase by more than 20% this year to 123,048, but said it will begin to slow down in the fourth quarter. Must Read: Xiaomi Redmi Pad 5G Price and Specifications leaked: Soon to be Launched in 2020

Google Parent Company’s Q1 Net Profit Increased: Polat also pointed out that Alphabet ’s stock repurchase will continue as planned, which should boost earnings per share and thus share price. In addition, Alphabet has begun to implement a series of cost reduction measures. The company announced last week that it will cut its marketing budget by 50% and will recoup its investment in data centers and employee education resources. Must Read: Samsung Will Launch First Pop-up Camera Phone Soon in 2020

After Alphabet’s first-quarter earnings report was released, the stock’s share price soared more than 8% after the market. As of Tuesday’s close, Alphabet’s stock price has fallen by about 8% so far this year.

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