After market close yesterday Alphabet Inc. announced its financial results for the 2017 first quarter and the numbers were huge.
The company reported revenue of $24.7 billion—its second largest quarter ever—a 22% increase over last year’s first quarter.
“Our excellent results represent a terrific start to 2017, with revenues up 22% versus the first quarter of 2016 and 24% on a constant currency basis. We clearly continue to benefit from our ongoing investments in product innovation and have great momentum in our new businesses across Alphabet,” said Ruth Porat, CFO of Alphabet.
In contrast to last quarter, where Alphabet also generated massive amounts of revenue but missed Wall Street expectations, the stock price is expected to open up 4% this morning.
Google’s search, display, and video advertising continues to account for the lion’s share of Alphabet’s revenue but non-advertising revenue, which consists mainly of the cloud computing business, the Pixel smartphones and the Play store, also grew dramatically in the quarter, jumping 49.4 per cent to $3.10 billion.
Net income rose to $5.43 billion, or $7.73 per share, from $4.21 billion, or $6.02 per share, a year earlier. Analysts on an average had expected a first-quarter profit of $7.34 per share, according to Thomson Reuters.