Alphabet reports Q1 2017 revenue of $24.7 billion, beating expectations [Livestream]

Owen Stevens
May 8, 2017

In the first quarter of 2017, Google has reported revenues of $24.75 billion, a 22% increase over this time a year ago.

Analysts then noted that the company's revenue coming from advertisers have fallen by more than 16% and forecasted for their cost-per-click revenue to go down further by 11%.

The stock price climbed to new highs on the strength of this report, trading up about 3 percent after hours.

Mark Mahaney, analyst at RBC Capital, said: "We believe the renegotiated Apple contract has something to do with this, but also a heavier share from mobile vs. desktop".

On the other hand, the "Google Other" reporting segment, which covers non-ad businesses such as Pixel phone sales, Google Play transactions and cloud apps and services, once more provided a lift.

Alphabet's category called "Other Bets" - which includes more risky projects like Google X, Nest, Life Sciences unit Verily, self-driving unit Waymo, and more - posted revenue of $244 million on an operating loss of $855 million. The company delivered $24.75 billion in revenue.

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Google reported earnings of $7.73 per share with their revenue up by 22% to $24.75 billion for the period that ended this March 31. Alphabet has changed its methodology for paid clicks and cost per click, resulting in a "modest increase in paid clicks and a modest decrease in cost-per-click". Analysts had been expecting about $24.2 billion in revenue and earnings of $7.40 per share. Alphabet Inc., formerly known as Google Inc., is headquartered in Mountain View, California. (GOOGL) on Thursday reported first-quarter earnings of $5.43 billion.

Alphabet said Google Properties revenues rose to $17.4 billion, while Google Network Members' properties revenues rose to $4 billion.

Kargman pointed out that 80% of digital advertising growth in the market is consumed by revenues going to Google and Facebook.

Membership of that service also rose, Microsoft said, reaching 26.2 million customers.

Pichai's massive pay package came even as his two bosses and Google co-founders Larry Page and Sergey Brin, once again drew salaries of only $1 for their roles as CEO and President, respectively, of parent company Alphabet.

Other reports by VgToday

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