The shares of Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG), the parent company of Google, declined during the extended trading on Thursday after reporting its first-quarter financial results.
Alphabet’s Class A (GOOGL) shares were down 4.73%% to $743.00 each and Class C (GOOG) shares declined 5.16% to $720 each at the time of this writing around 5:07 in the afternoon in New York.
Alphabet financial results
During the first quarter, Alphabet generated non-GAAP earnings of $7.50 per share, up from $6.47 per share in the same period last year. However, its quarterly earnings were lower than the $7.97 per share expected by Wall Street analysts.
The tech giant said its revenues increased from $17.26 billion to $20.26 billion. Analysts expected its revenues to be around $20.37 billion for the quarter.
In a statement, Alphabet CFO Ruth Porat said, “Our Q1 results represent a tremendous start to the year with 17% revenue growth year on year and 23% growth on a constant currency basis. We’re thoughtfully pursuing big bets and building exciting new technologies, in Google and our Other Bets, that position us well for long term growth.”
Alphabet ended the quarter with $75.26 billion cash, cash equivalents, and marketable securities. Its free cash flow was $5.23 billion.
The company repurchased 3.2 million Class C shares worth $2.3 billion during the quarter. Its remaining authorization for future stock buyback is around $1.4 billion.
Google’s revenues were $20.09 billion. Google’s operating income was $6.27 billion. Its Other Bets revenues were $166 million and operating loss was $802 million.
During the period, Google websites generated revenues of $14.32 billion and Google Network Members’ websites $3.69 billion. Its revenues from Google advertising were $18.2 billion and Google other revenues were $2.07 billion.
The aggregate cost-per-click (CPC) declined 9% year-over-year. The CPC on Google websites dropped 12% and CPC on Google Network Members’ websites fell 8% year-over-year.
In an interview with CNBC, Kevin Landis, chief investment officer at Firsthand Capital, commented, “When you’re the most successful company in your market, it’s hard to grow faster than the market. Sometimes if the macro picture slows down a little bit, you’re going to slow down, too.”