Alphabet Makes Record Profits, Thanks to Google Ad Sales
Alphabet, the parent company of search engine giant Google, saw substantial growth in revenues in the first quarter of 2021.
Alphabet Inc., the parent company of search engine Google, announced record profits in its latest financial results for the first quarter ending March 31.
The company reported a net income of $17.93 billion — a huge jump from the $6.84 billion it had reported around the same time last year. Alphabet also saw a 34% increase in its revenues year over year, from $41.2 billion to $55.3 billion.
Google search accounted for a majority of the revenues, making up $31.9 billion in sales in the first quarter. During the first quarter of last year, search made $24.5 billion in sales.
"Over the last year, people have turned to Google Search and many online services to stay informed, connected and entertained," Alphabet CEO Sundar Pichai said in a statement. "We’ve continued our focus on delivering trusted services to help people around the world."
YouTube ad sales jumped 49% year over year to $6 billion in the first quarter of 2021, according to the company's recent financial results. In total, Google advertising (including search and YouTube ads) made $44.7 billion in sales, comprising more than 80% of Alphabet's revenues.
Ruth Porat, CFO of Alphabet, added that, "Total revenues of $55.3 billion in the first quarter reflect elevated consumer activity online and broad based growth in advertiser revenue."
Justin Chan is a news writer at Entrepreneur.com. Previously, he was a trending news editor at Verizon Media, where he covered entrepreneurship, lifestyle, pop culture, and tech. He was also an assistant web editor at Architectural Record, where he wrote on architecture, travel, and design. Chan has additionally written for Forbes, Reader's Digest, Time Out New York, HuffPost, Complex, and Mic. He is a 2013 graduate of Columbia Journalism School, where he studied magazine journalism. Follow him on Twitter at @jchan1109.