Google’s parent company Alphabet has announced results for first quarter 2016 that fell short of anaylsts expectations. Alphabet raked in revenue of $20.26 billion in the period from January to March, reporting a 17% YoY increase in revenue.
The revenue is up from $17.3 billion in the same quarter last year. Alphabet reported a net income of $4.21 billion up from $3.52 billion in the same quarter last year. Non-GAAP net income comes in at $5.25 billion, up from $4.46 billion last year. The operating income was $5.34 billion while the operating margin was maintained at 26%.
Google’s advertising revenue increased 16.2 percent to $18.02 billion. Paid ad clicks during the first quarter 29 percent year over year with paid clicks on Google’s own websites going up 38% in the same period. Cost-per-click was down 9%, following the trend of the past few years, with cost-per-click on Google’s websites being down 12% as well.
Alphabet’s Android business which is now the “fastest-growing segment” of its revenue raked up $2 billion in Play Store and hardware sales. The company reported that it has $75 billion in cash (and cash equivalents) holdings, which is an increase of $10 billion from Q1 2015.
The company’s “Other Bets” which includes Google Fiber, home automation products Nest, self-driving cars and X – the research division that works on “moon shot” ventures, reported a rise in losses. The loss widened to $802 million, up from $633 million a year earlier. Revenue rose to $166 million from $80 million.
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