SAN FRANCISCO (AP) – Google parent Alphabet beat analyst earnings expectations but fell short on revenue, sending its stock down more than 7% in after-hours trading.
Alphabet reported a first-quarter profit of $8.3 billion, down 6% from $8.9 billion in the year-earlier period. Profit amounted to $11.90 per share, well above Wall Street estimates of $10.60.
But that figure doesn’t include an expected charge of $1.7 billion to account for a European Union antitrust fine. The fine was imposed in March for anti-competitive practices in Google’s advertising business, referring to a specific exclusivity practice Google now says it has ended.
Including the fine, Alphabet’s profit of $6.7 billion fell short of analyst estimates.
Excluding advertising commissions that Google pays to customers, Alphabet’s revenue was $29.5 billion – falling short of the $30 billion analysts were expecting. Overall revenue rose to $36.3 billion, up 17 percent from $31.1 billion a year ago.
The company reported widening losses in its “Other Bets” category – a broad segment that includes non-Google ventures such as self-driving car business Waymo and internet-balloon subsidiary Loon. Losses grew to $868 million from $571 million a year ago.
Alphabet once again expanded its workforce, growing to 103,459 employees – adding nearly 4,700 workers in the last three months.