(RTTNews) - Alphabet Inc. (GOOG, GOOGL), the parent company of Google, Tuesday reported a first-quarter profit that missed Wall Street estimates, however, revenues trumped expectations, despite slowdown in ad revenues due to the ongoing Covid-19 crisis.
Alphabet reported first-quarter profit of $6.84 billion or $9.87 per share, up from last year's profit of $6.66 billion or $9.50 per share. On average, 27 analysts polled by Thomson Reuters estimated earnings of $10.38 per share for the quarter. Analysts' estimates typically exclude one-time items.
Revenues for the quarter jumped 13 percent to $41.16 billion from $36.34 billion last year. Analysts had a consensus revenue estimate of $40.33 billion for the quarter.
Google advertising revenues rose to $33.76 billion from $30.59 billion last year, while Google other revenues increased to $3.62 billion from $4.44 billion. Google cloud revenues increased to $2.78 billion from $1.83 billion last year.
"Our business, led by Search, YouTube, and Cloud, drove Alphabet revenues to $41.2 billion, up 13% versus last year, or 15% 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. We are sharpening our focus on executing more efficiently, while continuing to invest in our long-term opportunities."
GOOG closed Tuesday's trading at $1,233.67, down $42.21 or 3.31%, on the Nasdaq. The stock, however, gained $39.92 or 3.24% in the after-hours trade.
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