The bosses of Google parent Alphabet search for superlatives to describe the group's first quarter performance

 
Oliver Gill
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Google rejigged its corporate structure to create Alphabet as its holding company in 2015 (Source: Getty)

Alphabet, the holding company for search engine giant Google, posted quarter revenue growth of over a fifth this evening.

The group's finance chief called the first quarter performance "terrific", while Larry Page, Alphabet's chief exec hailed the firm's holding structure as enabling it to better support budding entrepreneurs.

Shares jumped over five per cent in after hours trading following the publication of its results.

The figures

Revenues jumped from $20.3bn (£15.8bn) to $24.8bn, with year-over-year revenues increasing 22 per cent.

Operating income was $6.6bn, up from $5.3bn with margins rising from 26 per cent to 27 per cent.

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Net income increased from $4.2bn to $5.4bn.

Earnings per share were $7.73, up from $6.02 in the same period in 2016.

Alphabet's effective tax rate rose from 18 per cent to 20 per cent.

Why it's interesting

Larry Page, the chief executive of Alphabet, said Google's decision to create the holding company had helped investors more easily understand what it was up to, while also aiding the entrepreneurs it invests into better develop.

"The new structure has helped entrepreneurs build and run companies with the autonomy and speed they need," he wrote in a letter to investors.

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"In general we are taking a patient approach to investing our capital.

"We're not going to invest if we don't see great opportunities and we feel like our track record for picking some important efforts long before others is pretty good."

What the company said

Ruth Porat the finance chief of Alphabet said: "Our excellent results represent a terrific start to 2017, with revenues up 22 per cent versus the first quarter of 2016 and 24 per cent on a constant currency basis.

"We clearly continue to benefit from our ongoing investments in product innovation and have great momentum in our new businesses across Alphabet."

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