mountain view The Google parent company Alphabet has significantly exceeded market expectations with its figures for the past quarter. Revenue rose 32 percent year-on-year to $75.3 billion. Analysts had expected a good 72 billion dollars. The bottom line is that quarterly profit rose from 15.2 to 20.6 billion dollars, as Alphabet announced after the US market closed on Tuesday.
Earnings per share of $30.69 were also well above analyst forecasts of $27.35. The stock jumped around eight percent in after-hours trading. Alphabet also announced a 1-for-20 stock split. This will make the paper easier to trade after the price was last above $2700.
As usual, it was Google’s advertising revenue that brought in the bulk of the business. They rose within a year from 46.2 to 61.2 billion dollars. With an operating result of around 26 billion dollars, Google services were also the only profit maker. Meanwhile, cloud services saw revenue soar from $3.8 billion to $5.5 billion while operating in the red at $890 million.
The group’s so-called “other bets” such as self-driving cars and delivery drones made less sales, but at the same time more losses. Revenue fell from $196 to $181 million. The operating minus rose from 1.1 to 1.4 billion dollars.
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CFO Ruth Porat attributed the plus to increasing advertising revenue and revenue in the data cloud (cloud). The world’s largest and best-known search engine provider is benefiting from the fact that more and more people are spending time and shopping on the Internet. No other company in the world sells as many ads on the internet as Google.
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