Alphabet stock surged by double digits — (NASDAQ: GOOG) +12%, — after its first-quarter earnings easily cleared analyst expectations as revenues jumped 15% with strong performance, particularly at YouTube.
Revenues rose to $80.54B, easily topping consensus for $78.7B. Advertising revenue rose 13% to $61.7B.
Meanwhile, YouTube ads revenue — previously an area of concern — rose a full 21% to $8.09B. Subscriptions, platforms, and devices revenue jumped 18%.
And the momentum in Cloud continued, with 28% revenue growth and operating income that more than quadrupled year-over-year.
Operating income jumped 46% year-over-year, to $25.47B. Earnings per share landed at $1.89 vs. $1.50 expected by Wall Street.
The operating margin also expanded, to 32% from a year-ago 25%.
“Our results in the first quarter reflect strong performance from Search, YouTube, and Cloud,” said CEO Sundar Pichai. “We are well underway with our Gemini era and there’s great momentum across the company.”
Revenues by segment: Google search and other, $46.16B (up 14.4%); YouTube ads, $8.09B (up 20.9%); Google Network, $7.41B (down 1.1%); Google subscriptions, platforms and devices, $8.74B (up 17.9%); Google Cloud, $9.57B (up 28.4%); Other Bets, $495M (up 71.9%).
Operating income by segment: Google Services, $27.9B (up 28.3%); Google Cloud, $900M (up 371%); Other Bets, -$1.02B (vs. year-ago -$1.23B); Alphabet-level activities, -$2.3B (vs. year-ago -$3.3B).
The company also authorized the buyback of up to an additional $70B worth of shares and declared a cash dividend of $0.20 per share.
