Two of the world’s leading technology companies beat market expectations with their first quarter results.
Google parent Alphabet Inc beat analysts' estimates for quarterly revenue on Tuesday, as the internet's biggest supplier of search and video ads benefited from a rebound in ad spending.
Revenue rose to $55.31 billion (€46 billion) in the first quarter from $41.16 billion a year earlier. Analysts had expected revenue of $51.70 billion, according to IBES data from Refinitiv.
The results are the first sign that Google services may hold on to gains in usage brought on by lockdowns and other pandemic restrictions that forced people to shop and communicate online over the last year.
Alphabet shares rose about 5 per cent to $2,405 in extended trading.
Google ad sales surged 32 per cent in the quarter compared with a year ago. Cloud sales increased 45.7 per cent, in line with expectations.
Alphabet also said its board authorised a repurchase of up to an additional $50 billion of its shares.
Microsoft also beat Wall Street expectations for quarterly revenue as the software giant benefited from demand for its cloud-based services during the pandemic-induced remote working and learning.
The company’s revenue rose 19 per cent to $41.7 billion in the third quarter ended March 31st, beating analysts’ estimates of $41.03 billion, according to IBES data from Refinitiv.
The global shift to work from home has spurred demand for cloud-based computing, which is an advantage for Microsoft as well as its rivals including Alphabet Inc’s Google Cloud and Amazon.com Inc’s cloud unit.
Microsoft said revenue in its “Intelligent Cloud” segment rose 23 per cent to $15.1 billion, with 50 per cent growth in Azure. Analysts had expected a 46.3 per cent growth, according to consensus data from Visible Alpha.
On a constant currency basis, Azure revenue growth was 46 per cent in the quarter.
Revenue from its personal computing division, which includes Windows software and Xbox gaming consoles, rose 19 per cent to $13 billion, Microsoft said.
- Reuters
