Alphabet reported first-quarter revenue that rose more than expected, showing demand for advertising was relatively high in the months before the coronavirus pandemic hit the online search giant’s customers.
The Google parent said sales came in at $33.71 billion (Dh123.7bn), up 14 per cent from a year ago. That compares with an average analyst estimate of $32.6bn, according to data compiled by Bloomberg.
The results reflect the period before the full impact of the pandemic, which forced thousands of businesses to cut marketing spending.The company doesn’t issue forecasts, however, chief financial officer Ruth Porat said the final month of the quarter was difficult.
“Performance was strong during the first two months of the quarter, but then in March we experienced a significant slowdown in ad revenues,” she said in a statement. “We are sharpening our focus on executing more efficiently, while continuing to invest in our long-term opportunities.”
In an interview with Bloomberg TV, Ms Porat suggested the company’s services are being used more, which should help results in the future. “Given the usage trends we are seeing, we remain really optimistic about long-term trends,” she said.
The long-term opportunities include search, cloud computing, machine learning and consumer hardware, Ms Porat added, while noting the company is “looking at levers we have to moderate spending”.
Alphabet shares gained 3.9 per cent in extended trading. The stock closed at $1,232.59 in New York and has fallen about 7 per cent this year.
In Asia, where the pandemic hit earlier, Google revenue fell 3 per cent in the first quarter from the previous period. Google is culling its own advertising budget as part of a broader effort to contain costs, chief executive Sundar Pichai said in a recent memo to employees.
Alphabet has diversified into cloud services and gadgets, but advertising still accounts for the vast majority of revenue. Large clients like Expedia Group are already slashing marketing costs. Interpublic Group of Companies, one of the largest advertising holding companies, said last week the second quarter would be “very difficult”.
Google derives much of its revenue from small businesses, thousands of which could shut as a deep recession sets in. The internet company has a self-service ad platform that can be switched off quickly.
“Overall ad spending will mirror the likely contraction in the economy caused by the pandemic, and we expect Alphabet to suffer from slower growth for the balance of the year,” Wedbush Securities analyst Michael Pachter said in a note to clients before the results came out.
First-quarter net income was $6.84bn, or $9.87 per share, versus $6.66bn, or $9.50 per share, in the same period last year, the company reported.
FIXTURES
All games 6pm UAE on Sunday:
Arsenal v Watford
Burnley v Brighton
Chelsea v Wolves
Crystal Palace v Tottenham
Everton v Bournemouth
Leicester v Man United
Man City v Norwich
Newcastle v Liverpool
Southampton v Sheffield United
West Ham v Aston Villa
PROFILE OF STARZPLAY
Date started: 2014
Founders: Maaz Sheikh, Danny Bates
Based: Dubai, UAE
Sector: Entertainment/Streaming Video On Demand
Number of employees: 125
Investors/Investment amount: $125 million. Major investors include Starz/Lionsgate, State Street, SEQ and Delta Partners
The 12 breakaway clubs
England
Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur
Italy
AC Milan, Inter Milan, Juventus
Spain
Atletico Madrid, Barcelona, Real Madrid
Marathon results
Men:
1. Titus Ekiru(KEN) 2:06:13
2. Alphonce Simbu(TAN) 2:07:50
3. Reuben Kipyego(KEN) 2:08:25
4. Abel Kirui(KEN) 2:08:46
5. Felix Kemutai(KEN) 2:10:48
Women:
1. Judith Korir(KEN) 2:22:30
2. Eunice Chumba(BHR) 2:26:01
3. Immaculate Chemutai(UGA) 2:28:30
4. Abebech Bekele(ETH) 2:29:43
5. Aleksandra Morozova(RUS) 2:33:01
The specs
Engine: 5.0-litre supercharged V8
Transmission: Eight-speed auto
Power: 575bhp
Torque: 700Nm
Price: Dh554,000
On sale: now
MATCH INFO
Uefa Champions League last-16, second leg:
Real Madrid 1 (Asensio 70'), Ajax 4 (Ziyech 7', Neres 18', Tadic 62', Schone 72')
Ajax win 5-3 on aggregate
Recent winners
2002 Giselle Khoury (Colombia)
2004 Nathalie Nasralla (France)
2005 Catherine Abboud (Oceania)
2007 Grace Bijjani (Mexico)
2008 Carina El-Keddissi (Brazil)
2009 Sara Mansour (Brazil)
2010 Daniella Rahme (Australia)
2011 Maria Farah (Canada)
2012 Cynthia Moukarzel (Kuwait)
2013 Layla Yarak (Australia)
2014 Lia Saad (UAE)
2015 Cynthia Farah (Australia)
2016 Yosmely Massaad (Venezuela)
2017 Dima Safi (Ivory Coast)
2018 Rachel Younan (Australia)
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
ATP RANKINGS (NOVEMBER 4)
1. Rafael Nadal (ESP) 9,585 pts ( 1)
2. Novak Djokovic (SRB) 8,945 (-1)
3. Roger Federer (SUI) 6,190
4. Daniil Medvedev (RUS) 5,705
5. Dominic Thiem (AUT) 5,025
6. Stefanos Tsitsipas (GRE) 4,000 ( 1)
7. Alexander Zverev (GER) 2,945 (-1)
8. Matteo Berrettini (ITA) 2,670 ( 1)
9. Roberto Bautista (ESP) 2,540 ( 1)
10. Gaël Monfils (FRA) 2,530 ( 3)
11. David Goffin (BEL) 2,335 ( 3)
12. Fabio Fognini (ITA) 2,290
13. Kei Nishikori (JPN) 2,180 (-2)
14. Diego Schwartzman (ARG) 2,125 ( 1)
15. Denis Shapovalov (CAN) 2,050 ( 13)
16. Stan Wawrinka (SUI) 2,000
17. Karen Khachanov (RUS) 1,840 (-9)
18. Alex De Minaur (AUS) 1,775
19. John Isner (USA) 1,770 (-2)
20. Grigor Dimitrov (BUL) 1,747 ( 7)
