Google-parent Alphabet reports better than expected earnings

Alphabet Inc on Tuesday reported first quarter revenue above analysts’ estimates on higher demand for cloud services and better than expected ad sales.

The Google-parent said that it would buy back shares worth $70 billion.

Shares of Alphabet climbed more than  4% to $108.4 in after trading hours on upbeat results. The stock has gained 17.7% so far this year.

Alphabet reported revenue for the March quarter at $69.79 billion, higher than analysts’ forecasts.

It net profit stood at $15.05 billion for the quarter compared with $16.44 billion a year ago.

The company’s ad sales marginally fell to $54.55 billion from $54.66 billion a year ago.

The company said its sales, excluding partner payouts, were at $58.07 billion in the March quarter.

Ad sales at Google’s YouTube video site declined 2.5% in March quarter from last year period.

Alphabet’s net income stood at $15 billion, or $1.17 per share, compared to Wall Street’s $1.09 per share estimate.

To reduce costs, Alphabet in January had announced plans to lay off 12,000 employees, or 6% workforce. But the company could not complete the layoff target before the end of the March quarter.

Google CEO Sundar Pichai received a total compensation package worth more than $225 million in 2022, a regulatory filing showed.