Alphabet Inc. (GOOG,GOOGL), the parent company of Google, Tuesday reported its first-quarter results, with both profit and revenues missing Wall Street estimates, as revenue growth slows down. Shares of the company slipped over 4% in the extended trading session.
Alphabet reported first-quarter profit of $16.44 billion or $24.62 per share, a drop from last year’s profit of $17.93 billion or $26.29 per share. On average, 29 analysts polled by Thomson Reuters estimated earnings of $25.94 per share for the quarter. Analysts’ estimates typically exclude one-time items.
Revenues for the quarter gained 23 percent to $68.01 billion from $55.31 billion last year. Analysts had a consensus revenue estimate of $68.07 billion for the quarter. The company had reported a revenue growth of 34% growth in the first quarter of 2021 and 32% in fourth-quarter of 2021.
Google advertising revenues rose to $54.66 billion from $44.68 billion last year, as YouTube ad and Google Search revenues increased. Google cloud revenues rose to $5.82 billion from $4.05 billion last year.
Ruth Porat, CFO of Alphabet and Google, said: “We are pleased with Q1 revenue growth of 23% year over year. We continue to make considered investments in Capex, R&D and talent to support long-term value creation for all stakeholders.”
Commenting on the results, CEO Sundar Pichai said, “Q1 saw strong growth in Search and Cloud, in particular, which are both helping people and businesses as the digital transformation continues. We’ll keep investing in great products and services, and creating opportunities for partners and local communities around the world.”
GOOG closed Tuesday’s trading at $2,390.12, down $74.88 or 3.04%, on the Nasdaq. The stock further slipped $102.12 or 4.27% in the after-hours trading.
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