Google parent, Alphabet weathers COVID-19 storm, logs HUGE $41 bn in revenue; Sundar Pichai reacts

Alphabet shares were up 4 per cent after the company reported its first quarter earnings. "Given the depth of the challenges so many are facing, it`s a huge privilege to be able to help at this time," Sundar Pichai, Chief Executive Officer of Alphabet and Google, said in a statement late Tuesday.

Google's "other revenue" segment logged $4.4 billion in revenue - compared to $3.6 billion a year ago while YouTube revenue soared 33 per cent to $4 billion, Photo: Reuters

Despite coronavirus pandemic ravaging businesses after businesses, Google's parent company Alphabet logged $41.2 billion in first quarter (January-March period) sales, beating Wall Street expectations of $40.3 billion and earning $6.8 billion in profit. Advertising sales made up 82 per cent of Alphabet`s total revenue with $33.8 billion, up from $30.6 billion last year.

Alphabet shares were up 4 per cent after the company reported its first quarter earnings. "Given the depth of the challenges so many are facing, it`s a huge privilege to be able to help at this time," Sundar Pichai, Chief Executive Officer of Alphabet and Google, said in a statement late Tuesday.

"People are relying on Google`s services more than ever and we've marshalled our resources and product development in this urgent moment," Pichai added.

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Google's "other revenue" segment logged $4.4 billion in revenue - compared to $3.6 billion a year ago while YouTube revenue soared 33 per cent to $4 billion.

Google Cloud saw a jump of over 55 per cent to log $2.8 billion in revenue for the quarter.

"Our business, led by Search, YouTube, and Cloud, drove Alphabet revenues to $41.2 billion, up 13 per cent versus last year, or 15 per cent on a constant currency basis," said Ruth Porat, Chief Financial Officer of Alphabet and Google.

"Performance was strong during the first two months of the quarter, but then in March we experienced a significant slowdown in ad revenues," Porat added.

The second quarter is going to be very difficult as there is a downturn in the global web advertising market and according to industry experts, Google`s ad business is going to take a hit over the next three months.

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"We are sharpening our focus on executing more efficiently, while continuing to invest in our long-term opportunities," said Porat.

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