$谷歌A(GOOGL)$ stock price surged by 12% after the results, pushing its market capitalization past $2 trillion in after-trading hours.
All performance indicators better-than-expected, with net income growing by 57% year-over-year. The company announced its first-ever dividend plan and an additional $70 billion stock buyback program.
Key Metrics:
Earnings Per Share (EPS): $1.89, beating expectations of $1.515
Revenue: $805.4 billion, surpassing expectations of $785.9 billion
Acceleration in Advertising and Cloud Business:
Core advertising revenue grew by 13% year-over-year to $616.6 billion, exceeding the expected $601.8 billion. After a challenging 2022 and 2023, the core advertising business returned to growth.
Advertising revenue from YouTube increased by nearly 21% year-over-year to $80.9 billion, surpassing the expected $77.2 billion. Revenue from search and other advertising also grew by over 14% to $461.56 billion.
The cloud business saw first-quarter revenue increase by 28.4% year-over-year to $95.7 billion, with growth accelerating once again.
Additionally, operating profit from the cloud business increased from $190 million in the same period last year to $900 million.
First-ever Dividend + Buyback:
The company announced that it will pay a cash dividend of 20 cents per share to shareholders registered as of June 10th, payable on June 17th. The plan is to continue paying quarterly cash dividends in the future.
The company also authorized an additional $700 billion stock buyback.
CEO Sundar Pichai commented in the earnings report, "The first-quarter performance reflects strong performance in search, YouTube, and cloud. Our Twinstar era is progressing smoothly, with the entire company gaining momentum. Our leading position in artificial intelligence research and infrastructure, along with our global product footprint, positions us favorably for the next wave of artificial intelligence innovation." $Alphabet(GOOG)$
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