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Alphabet grows as Q1 2017 earnings exceed expectations

Google's umbrella corporation parent company Alphabet has just unveiled its earnings report for Q1 2017 (which ended in March), with some very positive results across the board.

First off, the company posted a net income of $5.42 billion on revenues of $24.75 billion, which is a 22% increase year-over-year, but slightly lower than Q4 2016. Moreover, earnings per share (EPS) clocked in at $7.73, lower than last quarter's $9.36. This could be due to the increase in ETR (effective tax rate) from 18% to 20%.

Google posted revenues of $17.4 billion, with an operating income of $7.59 billion, while Other Bets revenues actually grew from $165 million to $244 million. The division also posted a lower loss of $855 million as compared to last quarter's $1 billion.

As far as Google paid clicks go, those increased 44% year-over-year, but only 2% compared to last quarter, with the cost per click going down 19% YoY and 4% quarter-over-quarter. Regarding the way of measuring these stats, Alphabet stated:

In the first quarter of 2017, we refined our methodology for paid clicks and cost-per-click to include additional categories of TrueView engagement ads and exclude non-engagement based trial ad formats. This change resulted in a modest increase in paid clicks and a modest decrease in cost-per-click.

Finally, the headcount rose by nearly 10,000 people as compared to the same period last year, reaching 73,992 versus 64,115.

According to Alphabet's CFO, Ruth Porat, the positive numbers can be attributed to "ongoing investments in product innovation" which have translated into "great momentum in our new businesses across Alphabet".

All in all, a very good quarter for Google's parent company.

Source: Alphabet via Android Police

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