SAN FRANCISCO (Reuters) – Google owner Alphabet Inc ( GOOGL.O ) reported first-quarter revenue and profit that outperformed analysts' estimates as it posted better ad rates and unrealized Revenue excluded startup investments, sending their shares up 1 percent after hours.
Facilitating results involves investing in new companies that go beyond the core search business subverted alphabet outlook. There was also no immediate indication that rising global privacy concerns would affect profits.
Alphabet's profit margins have fallen in recent quarters as it increases costly new cloud computing and hardware projects in its core Google area and despite spending cuts on unprofitable additional initiatives called "other bets".
Quarterly earnings of $ 9.4 billion, or $ 13.33 per share, were $ 6.56 billion, or $ 9.28, according to Thomson Reuters I / B / E / S per share. Approximately $ 3.40 of earnings per share was attributable to a new accounting treatment for unrealized gains in Alphabet's investments in startups such as Uber Technologies Inc. [UBER.UL].
Excluding investment-related gains and other items, adjusted earnings were $ 9.93 per share, surpassing the consensus of $ 9.28 per share.
The price of clicks and views on ads sold by Google has grown in his favor as advertisers tracked search engine ad slots, the YouTube video service, and millions of affiliate apps and websites.
Alphabet appetite was weakened by a combination of cost and regulatory concerns as officials around the world seek to force changes to Google's business practices by giving customers more control over the privacy of their data , Equities fell nearly 3.5 percent this year before recovering rapidly from profit last week.
U.S. Initially, at a hearing this month, legislators wanted to put Google on the side of rival Facebook Inc. ( FB.O ) to learn how British data analyst Cambridge Analytica was able to capture data about ignorant Facebook users ,
Google was later apologized. But analysts following the company said that Google could not escape the regulators of the European Union, which want to enforce a new data protection law next month. It could drive more users to refuse to accept personalized ads on the Internet, which costs Google a couple of billion dollars in annual revenue, said Brian Wieser, Senior Analyst at Pivotal Research.
Advertisers may also limit their advertising purchases this year, while at the same time sorting out their own compliance with the new European policy known as the General Data Protection Regulation, he said.
However, any pullback would be temporary due to the effectiveness of Internet advertising, compared to declining media such as print and broadcast, analysts say. Alphabet's first quarter results have once again shown that advertisers' appeal for Google's high-performance systems is particularly strong, which could help them recover from any setbacks to privacy.
Global ad revenue increased to $ 31.1 billion, ahead of analyst estimates of $ 30.3 billion.
Google's mobile app store and growth priorities, such as cloud computing services and consumer devices, totaled $ 4.4 billion in the first quarter.
However, Google saw a decline in operating margin compared to the previous year, when it had 2,000 employees in Taiwan for $ 1.1 billion from HTC Corp. acquired ( 2498.TW ).
Google has also seen cost increases from rising as it grants shares to its employees and earns streaming rights to its YouTube TV offer.
The managers have said that some costs will moderate this year.
coverage by Paresh Dave and Arjun Panchadar; Arrangement by Lisa Shumaker and Peter Henderson