Google’s parent company reported today that its earnings grew by double digits in its first quarter during the Coronavirus epidemic, beating estimates.
“Given the depth of the challenges so many are facing, it’s a huge privilege to be able to help at this time,” Alphabet and Google CEO Sundar Pichai said in a prepared statement. “People are relying on Google’s services more than ever, and we’ve marshaled our resources and product development in this urgent moment.”
Alphabet reported net profits of $6.8 billion on revenues of $41 billion in the quarter ending March 31; that latter figure represents a 13 percent jump year-over-year (YOY). But the firm also reported that its ad sales—its primary source of revenue—nosedived during the third of the three months in the quarter.
Alphabet is, of course, a strange company. Google represents 99.55 percent of Alphabet’s revenues and is over 100 percent of its profits since its so-called “other bets” all lose money. And Google’s advertising business accounted for 82 percent of Google’s total revenues; it would have been higher if it weren’t for that drop-off in the third month.
Discussing the “significant slowdown in ad revenues” in that month, Alphabet CFO Ruth Porat said that the firm was “sharpening [its] focus on executing more efficiently, while continuing to invest in long-term opportunities.”
Google’s cloud revenues was just $2.8 billion in the quarter, up from $1.8 billion a year earlier. And Google’s other revenues—which include its poorly-performing hardware business plus Play Store and non-advertising YouTube revenues—contributed $4.4 billion, up from $3.6 billion in the year-ago quarter.