Google parent Alphabet beats estimates with $31.1 billion in revenue in first quarter

Alphabet, Google's parent company, announced solid first quarter financial results for the 2018 fiscal year (ending March 31) after the close of trading on April 23, US time.

Alphabet had net income of $9.4 billion, revenue including traffic acquisition costs (TAC) of $31.1 billion, and non-GAAP earnings per share of $13.33. Analysts' average forecast was for revenue of $30.29 billion and earnings per share of $9.28.

　Net sales excluding TAC were forecast to be $24.24 billion. Alphabet's non-TAC revenue was $24.812 billion, slightly higher than expected. TAC accounted for 24% of Google's advertising revenue.

　Google's sales were $30.99 billion, accounting for the majority of sales in the first quarter. Google's business includes enterprise cloud, software and data management products. Google's rest of the division, which now includes its Nest smart thermostat business, had $4.35 billion in revenue.

　Sales from Alphabet's Other Bets division, known as the "moonshot", declined due to the transfer of Nest to Google's hardware division. The Other Bets division currently consists of Waymo, Fiber, Verily, and Alphabet's healthcare efforts. The Other Bets division had sales of $150 million in the first quarter and an operating loss of $571 million, up slightly. Last quarter, the division, including Nest, had sales of $409 million and an operating loss of $916 million.

　The cost-per-click (CPC), which represents the profit per click on Google's ad, decreased by 19% year-on-year and by 7% year-on-year. Total ad revenue was $26.64 billion.

This article was originally published by CBS Interactive and edited by Asahi Interactive for Japan.