Alphabet, the parent company of internet search giant Google, fell short of Wall Street’s revenue targets for its first three months of the year, and the stock is down over 7% in after hours trading on Monday.
“We delivered robust growth led by mobile search, YouTube, and Cloud with Alphabet revenues of $36.3 billion, up 17% versus last year, or 19% on a constant currency basis,” Ruth Porat, Chief Financial Officer of Alphabet and Google, said in a statement on Monday.
A slowdown in Google’s ad revenue could be reason for the missed targets. Google’s ad revenue grew by only 15% year-over-year in Q1 2019, compared to over 24% year-over-year growth rate in Q1 2018.
Here’s what Alphabet reported:
Net Revenue (excluding TAC): $29.48 billion, up 18.6% year over year, but below the $30.04 billion that analysts expected.
Q1 EPS (GAAP): $9.50, (including a $1.7 billion EU fine) compared with $10.10 expected by analysts.
Other bets revenue: $170 million, compared with $150 million last year.
Other bet operating loss: ($868) million, versus ($571) million last year.
Traffic acquisition costs (TAC): $6.86 billion, or 22% of advertising revenue, compared with 24% of advertising revenue during last year.
Google’s capital expenditure: $4.6 billion, compared with $7.3 billion during the same period last year.
Employees: 103,459, adding more than 4,600 employees to its payroll in the first quarter.
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