letterGoogle and YouTube’s parent companies reported strong growth in the first quarter of Thursday after the bell. Stocks rose more than 5% in after-hours trading.

This is the case with the analyst estimates surveyed by LSEG.

• income: $90.23 billion and $89.12 billion, estimated
• Earnings per share: $2.81 vs. $2.01, estimate

Wall Street is also watching several other numbers in the report:

• YouTube advertising revenue: $8.93 billion vs. $8.97 billion, according to StreetAccount
• Google Cloud Revenue: According to StreetAccount, $12.26 billion vs. $12.27 billion
• Transportation Acquisition Cost (TAC): According to StreetAccount

Based on its first-quarter earnings Report.

The company’s overall revenue grew 12% year-on-year, higher than Wall Street’s 10% forecast.

Google’s YouTube advertising revenue was only $8.93 billion in analyst expectations. Overall advertising brought in $66.89 billion, up 8.5% from last year.

The company’s “Search and Other” segment reported $50.7 billion, up 9.8% from $46.16 billion a year ago. Alphabet said the AI ​​overview is the AI ​​tool that its AI tool placed at the top of Google’s search results page, now has 1.5 billion users per month, up from 1 billion in October.

Philipp Schindler, Google’s business leader, said the company was “not immune to the macro environment”, adding President Donald Trump’s Decide to end Next month’s De Minimis trade loophole will “cause a minor headwind for our advertising business in 2025, mainly from Apac’s retailers.”

The De Minimis trade exemption allows goods worth less than $800 to enter the U.S. tax, a key part of the business of Chinese e-commerce companies Temu and Shein, which have previously spent a lot of time on online advertising. The exemption plan is closed on May 2.

“I would like to say that we have a lot of experience in management in uncertain times and we focus on providing customers with in-depth insights into consumer behaviors related to their business,” Schindler said.

Finance, retail, healthcare and travel are among Google’s top industry ads that contribute to revenue growth, Schindler said.

Alphabet’s net income rose 46% to $34.54 billion, or $2.81 per share, from $23.66 billion or $1.89 per share a year ago. The company said it included $8 billion in unrealized earnings, and its non-market equity securities were linked to Alphabet’s investment in a private company.

According to StreetAccount, the company reported revenue from its cloud computing business at $12.26 billion, slightly lower than analysts’ expectations of $12.27 billion. But revenue in the cloud division rose 28% year-on-year, with a profit margin of 17.8%, compared to 9.4% a year ago.

In March, Alphabet made its biggest acquisition ever agree Buy Wiz for $32 billion in cash, up from nearly $10 billion offered to the startup in 2024, and said the deal is expected to be completed next year, but requires regulatory approval. With this acquisition, Google will seek to strengthen security products in its cloud division.

“We think this will help inspire more multi-cloud computing, which is what customers want,” Alphabet CEO Sundar Pichai said of the acquisition on Thursday.

The company said shares in its “other bets” segments, including its self-driving car units Waymo and Life Sciences divisions, actually brought in $450 million, down 9% from $495 million a year ago. The division lost $1.23 billion, up from $1.02 billion the previous year.

Alphabet said Waymo offers over 250,000 fully autonomous paid rides in the San Francisco, Los Angeles, Phoenix and Austin areas each week. This is 200,000 in February, before the service is opened Austin and more extensive San Francisco Bay Area.

“Waymo is continuing to develop its impressive technological achievements to rapidly expand and develop sustainable business models,” Alphabet CFO Anat Ashkenazi said on Thursday’s call.

Ashkenazi also said the company still wants to invest about $75 billion In this year’s capital expenditure, but stipulated: “Investment levels may fluctuate from quarter to quarter due to changes in delivery and construction plans.”

Alphabet also said its board of directors authorized it to buy back an additional $70 billion in stock, just like it did a year ago.

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