Google parent Alphabet sees first-quarter profit and revenue beat expectations

Google’s parent Alphabet Inc (NASDAQ:GOOGL) saw its first-quarter profit and revenue beat expectations as its core advertising business continued to grow strongly.

After the New York market close last night, Alphabet reported a 29% leap in first quarter net income to US$5.43bn, giving earnings per share of US$7.73, well above estimates for US$7.39, as revenue rose to US$24.75bn.

For the first quarter of 2016, the internet search giant’s parent had reported net income of US$4.21bn and adjusted earnings per share of US$6.02 on revenue of US$20.26bn.

Advertising and non-advertising revenue jump

The group saw its advertising revenues rise to US$21.4bn during the quarter, up from just over US$18bn a year ago.

Google’s non-advertising revenue, which consists mainly of the cloud computing business, the Pixel smartphones and the Play store, also grew dramatically in the quarter, jumping 49.4% to US$3.10bn.

In after-hours trading, Alphabet shares were over 4% higher at US$929.50.

Story by ProactiveInvestors