Alphabet Inc. (NASDAQ: GOOGL) announced financial results Tuesday after market closed, for the quarter ended March 31, 2020. Shares of the company spiked more than 9 percent on revenue increase, despite a significant slowdown in ad sales. Revenue after removing traffic-acquisition costs grew to $33.7 billion from $29.48 billion in the year-ago period.
“Given the depth of the challenges so many are facing, it’s a huge privilege to be able to help at this time,” said Sundar Pichai, Chief Executive Officer of Alphabet and Google. “People are relying on Google’s services more than ever and we’ve marshalled our resources and product development in this urgent moment.”
“Our business, led by Search, YouTube, and Cloud, drove Alphabet revenues to $41.2 billion, up 13% versus last year, or 15% on a constant currency basis,” said Ruth Porat, Chief Financial Officer of Alphabet and Google. “Performance was strong during the first two months of the quarter, but then in March we experienced a significant slowdown in ad revenues. We are sharpening our focus on executing more efficiently, while continuing to invest in our long-term opportunities.”
A downturn in advertising was predictable due to the COVID-19 pandemic. Specifically, such industries as travel and entertainment have slashed advertising budgets for the time being. “Performance was strong during the first two months of the quarter, but then in March we experienced a significant slowdown in ad revenues,” Alphabet Chief Financial Officer Ruth Porat said in Tuesday’s announcement. “We are sharpening our focus on executing more efficiently, while continuing to invest in our long-term opportunities.”