Google parent Alphabet reports record-breaking first quarter; stock soars
Now that we are in the midst of earnings season, Google parent Alphabet announced its results for the first quarter of 2021. Alphabet said that it garnered a record $55.3 billion in revenue from January through March which was a healthy 34% gain from the $41.2 billion that the company grossed during the same quarter last year.
Net income soared from last year's $6.84 billion (or $9.87 per share) to this year's $17.93 billion (or $26.29 per share). Advertising revenue was $44.68 billion from last years' $33.76 billion for a 32.3% increase. YouTube ad revenue for the quarter rose 48.8% to $6.01 billion from $4.04 billion.
Google and Alphabet CEO Sundar Pichai said, "Over the last year, people have turned to Google Search and many online services to stay informed, connected and entertained. We’ve continued our focus on delivering trusted services to help people around the world. Our Cloud services are helping businesses, big and small, accelerate their digital transformations."
Google parent Alphabet reported very strong first quarter earnings today
Ruth Porat, CFO of both Google and Alphabet, also weighed in on the release. Porat stated, "Total revenues of $55.3 billion in the first quarter reflect elevated consumer activity online and broad based growth in advertiser revenue. We’re very pleased with the ongoing momentum in Google Cloud, with revenues of $4.0 billion in the quarter reflecting strength and opportunity in both GCP and Workspace."
Porat was asked during Google's conference call whether the change in consumer behavior will continue. The executive said that it will all come down to the pace of global recovery from the Covid-19 pandemic.
The Google "Other" category, which includes Pixel phones and other hardware, YouTube's non-ad revenue, and the Google Play Store, saw sales rise to $6.50 billion from $4.44 billion during the first quarter of 2020. That is a 44.4% gain year-over-year.
Google spent a little more to obtain more business. For the quarter, its Total Acquisition Costs (TAC) were $9.71 billion compared to last year's $7.45 billion. That works out to a 30% increase on an annual basis.
Alphabet shares (GOOG) closed Tuesday's regular trading session down $19.62 or .84% to $2,307.12 per share. After the earnings were released, the stock rose $106.28 or 4.61% to $2,413.40.