Alphabet, the world's largest provider of search and video advertisements, dropped more than 4.3 per cent in extended trading after it reported weaker than expected earnings for the first quarter.
The company reported a net profit of more than $16.4 billion in the three months ending on March 31, nearly 8.3 per cent down on an annual basis. It was 20.3 per cent or $4.2bn less on a quarterly basis.
Revenue at Google’s parent company during the period rose almost 23 per cent annually to more than $68bn. But it was 9.7 per cent down compared to the quarter that ended on December 31.
The company’s stock was trading at $2,270 a share in after-hours trading.
“Q1 saw strong growth in search and cloud, in particular, which are both helping people and businesses as the digital transformation continues,” said Sundar Pichai, chief executive of Alphabet.
“We will keep investing in great products and services … and creating opportunities for partners and local communities around the world."
Google services business — which includes advertisements, Android, Chrome, hardware, Maps, Search, Google Play and YouTube — accounted for more than 90 per cent of the company’s total sales.
It added more than $61.4bn to overall revenue, almost 20.1 per cent more than the first quarter of 2021.
Google’s advertising revenue from Search, YouTube and other businesses increased 22.3 per cent yearly to more than $54.6bn in the first quarter.
The total revenue from the cloud business grew an annual 43.8 per cent to more than $5.8bn.
Alphabet said its operating loss in the cloud segment reached $931 million during the quarter, which narrowed from a $974m loss in the same period in 2021.
Google Cloud includes the company’s infrastructure and data analytics platforms, collaboration tools and other services for enterprise customers.
It generates revenue mainly from fees received for cloud platform services and workspace collaboration tools.
This month, Google announced it would invest about $9.5bn in its US offices and data centres this year as it seeks to get more employees back into its buildings as Covid-19 restrictions ease.
The company aims to create 12,000 jobs as part of the investment.
The California-based company’s revenue from other investments, or subsidiaries, increased more than 120 per cent yearly to $440m.
Other bets are derived mainly through the sale of internet offerings, as well as licensing and research and development services.
This includes Alphabet’s X lab, self-driving unit Waymo and other non-Google companies.
Alphabet spent more than $9.1bn on research and development, nearly 13.4 per cent of its total sales in the first quarter. It was 21.8 per cent more than the R and D expenditure of the same period in 2021.
“We are pleased with Q1 revenue growth of 23 per cent," chief financial officer Ruth Porat said.
"We continue to make considered investments in capex [capital expenditure], R&D and talent to support long-term value creation for all stakeholders."
YouTube added more than $6.8bn to Alphabet’s total revenue, surging more than 14.3 per cent annually.
Google’s total acquisition costs stood at nearly $11.99bn, up 23.5 per cent on an annual basis. It exceeded analysts’ expectations of $11.69bn.
TACs are payments that search companies make to affiliates and online companies for bringing traffic to their websites. It is a major source of expenses for companies such as Google and Yahoo.
Alphabet’s total cash, cash equivalents and marketable securities reached more than $133.9bn at the end of last year, a year-on-year drop of more than 4 per cent.
Alphabet, which employs 163,906 people globally, earned almost 46.6 per cent of its first quarter revenue or more than $31.7bn from the US market.
In Europe, the Middle East and Africa, the company earned more than $20.3bn or 30 per cent of its total sales.
In the last quarter, Alphabet’s earnings for each share dropped 6.4 per cent yearly to 24.62, missing analysts’ estimates of $25.91.
ZAYED SUSTAINABILITY PRIZE
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
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Manchester City 5 Swansea City 0
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The specs
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Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
UAE currency: the story behind the money in your pockets
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Visit Abu Dhabi culinary team's top Emirati restaurants in Abu Dhabi
Yadoo’s House Restaurant & Cafe
For the karak and Yoodo's house platter with includes eggs, balaleet, khamir and chebab bread.
Golden Dallah
For the cappuccino, luqaimat and aseeda.
Al Mrzab Restaurant
For the shrimp murabian and Kuwaiti options including Kuwaiti machboos with kebab and spicy sauce.
Al Derwaza
For the fish hubul, regag bread, biryani and special seafood soup.
Analysis
Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more
UAE currency: the story behind the money in your pockets
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Mica
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