Revenue for Alphabet, the parent company of Google and YouTube, climbed to $ 41.159 billion in the first three months of 2020, a 13% increase from the same period last year.
Its biggest source of revenue was advertising on Google, which brought in $ 33.763 billion, a 10.4% year-over-year increase. $ 4,038 billion came from YouTube ads, an increase of 33.5%. Revenue from “Google search and others” was $ 24.502 billion, an increase of 8.7%.
Google’s cost of revenue was US $ 33.182 billion, while the company also spent US $ 6.820 on research and development. Selling and marketing costs amounted to US $ 4.5 billion, up 15.2%. In the first quarter of last year, Google paid $ 1.697 in fines from the European Commission for abusive practices in online advertising. This quarter, that cost fell to zero.
Similar to the warnings issued by Facebook, Google noted that while the overall period was strong, the end of the quarter presented worrying signs.
“Performance was strong in the first two months of the quarter, but in March we saw a significant slowdown in ad revenue,” said Ruth Porat, chief financial officer at Google. “We are focusing more on more efficient execution, while continuing to invest in our long-term opportunities. “
Alphabet and Google CEO Sundar Pichai added, “Given the depth of the challenges so many people face, it’s a huge privilege to be able to help out at this time. People rely on Google’s services more than ever, and we have mobilized our resources and product development at this urgent time.