Google parent company Alphabet Inc delivered its first-quarter earnings for the year on Thursday that met analysts estimates sending its shares up by more than 4% during the after-hours trading.
For the first-quarter, Google delivered a jump in their earnings by 28% attributing to the company’s shares crossing the 900 level during the after-hours trading. 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.
This beat analysts expectation of earnings of $7.40 per share on sales of $24.22 billion. Last year, the company delivered earnings of $6.02 per share on total sales of $20.26 billion during the same quarter.
Google’s net revenue stood at around $20.12 billion, up by 22% from the same period last year excluding the company’s expenses in acquisitions on partner websites that carry their advertisements worth at around $4.63 billion but nonetheless beating estimates.
Alphabet’s other businesses such as its Verily Life Sciences, Google fiber, and Nest has overall been able to generate around $244 million during the fourth quarter of 2016 up by $165 million or 48% from the first quarter of 2016.
Alphabet missed its previous quarterly earnings report missing analysts estimates of $9.76 earnings per share, delivering only $9.36 per share on a revenue of $26.05 billion. Shares of the company then slumped by 3% on the weak earnings report.
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%. Prices of the ad click services offered by Google has also reportedly fallen by 15% despite the increase in the number of clicks recorded.
Ad Partner Revenue
The weak advertisement revenue did not drag the company down this quarter, unlike the previous period. Google stated in its earnings release that the company had been able to refine their paid clicks and cost-per-click methodology. For the quarter, advertising revenues rose to $21.4 billion up from the $18 billion during the same quarter a year ago.