The Google division of Alphabet reported revenues of $20.091 billion, representing nearly all of Alphabet’s total revenue of $20.257 billion for the first quarter of the year on Thursday. Q1 2016 marks the second quarter Google’s financial numbers have been released under the Alphabet umbrella.
Alphabet missed analyst expectations of $20.38 billion in quarterly revenue and earnings per share (EPS) of $7.96. EPS came in at $7.50.
Overall, Google revenue increased 17 percent from a year ago. Google sites generated $14.328 billion in quarterly revenue, up 20 percent from Q1 2014’s $11.932 billion. Revenue from Google network sites ticked up three percent year over year to $3.692 billion. Total advertising revenues were $18.020, up 16 percent from $15.508 reported in Q1 2014.
Paid clicks rose 29 percent year over year and fell three percent coming off the Q4 holiday retail season. Clicks from Google sites jumped 38 percent year over year, while clicks from Network sites rose two percent.
CPCs were off nine percent year over year and flat from the previous quarter. Notably, for the first time since the first quarter of 2014, Google posted a quarter-over-quarter increase in CPCs from Google sites, rising two percent in Q1 2016 over Q4 2015.
Google paid network partner sites $3.788 billion in total acquisition costs (TAC), accounting for 21 percent of revenues, which is in line with previous quarters.
Alphabet’s “Other Bets” businesses reported combined revenue of $166 million, up from $80 million the previous year. Net operating losses from these operations grew bigger, however, increasing from a quarterly loss of $633 million a year ago to a loss of $802 million in Q1 2015.
The earnings call is available here.
Alphabet’s stock was off by nearly five percent in after-hours trading on news of the earnings disappointment.
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