Alphabet (GOOGL) earnings Q1 2021

Alphabet reported huge gains on its income statement for the first quarter of 2021, as well as a new $ 50 billion share buyback. This increased the share in after-hours trading by more than 4%.

Here’s how Google’s parent company performed in the quarter compared to Wall Street analysts surveyed by Refinitiv:

  • Merits: Expected $ 26.29 per share versus $ 15.82 per share
  • Revenue: Expected to be $ 55.31 billion versus $ 51.70 billion
  • Google Cloud Revenue: FactSet estimates $ 4.05 billion versus $ 4.07 billion.
  • YouTube ads: $ 6.01 billion versus $ 5.70 billion, according to StreetAccount.
  • Traffic Acquisition Costs (TAC): FactSet estimates $ 9.71 billion versus $ 9.25 billion.

Google’s revenue increased 34% over the same period last year. The company reported advertising revenue of $ 44.68 billion for the quarter. That’s a significant increase from $ 33.76 billion in the year-ago quarter. That makes it the fastest annualized growth rate in at least four years, although simple comparisons boosted results as the coronavirus pandemic outbreak led to a sharp drop in ad spend.

YouTube ads were $ 6.01 billion for the quarter – up 49% year over year.

YouTube became the winner of the pandemic in terms of social media websites, according to a recent Pew report. On the video platform, usage increased from 73% of adults in the US in 2019 to 81% in 2021.

YouTube also released its latest metrics for its TikTok competitor Shorts in the first quarter, which the company said had 3.5 billion daily views at the end of January. It also announced that it would expand to other countries, including the US, starting this year.

Google Cloud revenue rose 46% year over year to $ 4.05 billion, in line with Wall Street expectations. During the quarter, the company lost $ 974 million, significantly reducing losses from the year-ago period. Google Cloud includes infrastructure and data analytics platforms, collaboration tools like Google Docs, and “other enterprise customer services”.

The company’s “other bets” segment, which includes health tech unit Verily and autonomous vehicle betting Waymo, lost $ 1.15 billion on sales of $ 198 million.

Alphabet’s board of directors approved an additional share buyback of up to $ 50 billion on April 23.

In March, Google announced a $ 7 billion investment to expand offices and data centers in 19 states, creating at least 10,000 full-time positions. It did when the company doubled in size after moving its workforce back to physical offices after the pandemic.

The company will discuss the results with investors at 5:00 p.m. ET.

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– CNBC’s Jessica Bursztynsky contributed to this report.

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