Alphabet, Google’s parent company, reported impressive revenue growth in its latest quarter, driven by strong performance in its search engine and video platform, YouTube. Despite recent fluctuations in the digital advertising industry, Alphabet reported $80.5 billion in quarterly sales, up 15 percent from the previous year, surpassing analysts’ estimates. Profit also saw a significant increase, climbing 36 percent to $23.7 billion.
In a strategic move, Alphabet announced that it would be giving shareholders a dividend of 20 cents per share for the first time, to be paid on June 17. Additionally, the company’s board approved a $70 billion share repurchase program, leading to a 13 percent rally in Alphabet shares in after-hours trading.
Alphabet has been leveraging its advertising profits to fuel its aggressive push into generative artificial intelligence, competing with tech giants like Microsoft and OpenAI. The company reported a significant increase in capital expenditures, with $12 billion spent on deploying A.I. across its business through server computers and data centers. Despite facing setbacks, such as the controversy surrounding its Gemini chatbot, Alphabet continues to integrate A.I. into various aspects of its product portfolio.
To sustain its A.I. initiatives, Alphabet has been cutting costs, including shedding employees in various business units. As of March 31, the company had 180,895 employees, slightly down from the previous quarter but significantly lower than the previous year. Google’s search and related revenue saw a 14 percent increase, while advertising sales at YouTube climbed 21 percent. Google Cloud, the company’s cloud computing unit, reported a 28 percent increase in sales.
Overall, Alphabet’s strong financial performance in the face of industry challenges underscores its resilience and strategic focus on innovation and growth.
