Alphabet Inc. (NASDAQ: GOOGL) reported first-quarter 2020 results after markets closed Tuesday. The search engine behemoth reported adjusted diluted earnings per share (EPS) of $9.87 on revenues of $41.16 billion. In the year-ago quarter, Alphabet posted EPS of $11.90 on revenues of $36.34 billion. Analysts were estimating EPS of $10.33 on revenues of $40.38 billion.
The Google segment posted first-quarter revenues of $24.50 billion, up from $22.55 billion a year ago. Operating income rose from $9.19 billion to $9.27 billion. The operating loss on other (Bets) revenues totaled $1.12 billion, higher than the $868 million loss in the year-ago quarter.
Net income for the quarter totaled $6.84 billion compared with net income of $6.66 billion in the year-ago quarter. In the year-ago quarter, adjusted net income included a $1.7 billion European Commission’s fine.
Google search and other revenue totaled $24.05 billion, up from $22.55 billion in the year-ago quarter. YouTube ad revenues rose from $3.03 billion to $4.04 billion and revenues from Google Network Properties rose from $5.02 billion to $5.22 billion. Other revenues, including YouTube non-ad revenue, rose from $3.62 billion to $4.44 billion. Overall, revenues rose about 13.3% year over year.
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CEO Sundar Pichai said:
Given the depth of the challenges so many are facing, it’s a huge privilege to be able to help at this time. People are relying on Google’s services more than ever and we’ve marshalled our resources and product development in this urgent moment.
CFO Ruth Porat added:
Performance was strong during the first two months of the quarter, but then in March we experienced a significant slowdown in ad revenues. We are sharpening our focus on executing more efficiently, while continuing to invest in our long-term opportunities.
Traffic acquisition costs rose from $6.86 billion to $7.45 billion year over year.
Alphabet stock traded up about 3.5% in Tuesday’s after-hours session at $1,277.19 in a 52-week range of $1,008.87 to $1,530.74. The company’s 12-month price target is $1,472.18 and its market cap is $848.99 billion. Alphabet does not pay a dividend and is sitting on cash and other liquid assets totaling $117.23 billion.
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