Google Revenues Climb, in Encouraging Sign for Big Tech

By Rob Copeland 

Google's parent posted a sustained rise in revenue in the first quarter, suggesting that Big Tech might weather the coronavirus pandemic better than others in the corporate world.

Alphabet Inc., an online-advertising powerhouse, reported total revenue of $41.2 billion for the first quarter, up 13% compared with a year earlier. Though the company doesn't provide future guidance for earnings and frequently diverges from market expectations, this was a particularly strong reveal for a company that has been a model of growth during its 22 years of existence.

Analysts polled by FactSet had expected revenue of $40.8 billion. The company's shares gained 3% in after-hours trading immediately after the release.

The Google results represent the first public hint of how the major technology companies are faring in a troubled economy. The conglomerate's many arms overlap with rivals like Amazon.com Inc. and Facebook Inc. that have yet to report earnings.

Alphabet's profit came in at $8 billion, up from $6.6 billion a year ago. The company makes most of its money from online advertising in areas like search, where many major customers are pulling back sharply in industries including travel and retail. The company's YouTube unit, on the other hand, has an opportunity to grab eyeballs, and perhaps associated advertising, from homebound users turning to the video platform in lockdown.

Google's revenue has risen in every quarter of its history.

"People are relying on Google's services more than ever, and we've marshalled our resources and product development in this urgent moment," Alphabet CEO Sundar Pichai said in a statement.

Write to Rob Copeland at [e-mail]

(END) Dow Jones Newswires

April 28, 2020 16:41 ET (20:41 GMT)

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