Alphabet Inc. (GOOGL) the parent company of leading search engine Google has reported quarterly record profit for the second consecutive quarter. The company attributes this performance to increased online activities and as sales during the pandemic.
For the first quarter ending March 31, Google recorded a quarterly profit of $17.9 billion, or $26.29 per share. This was on the higher side compared to the $15.88 per share expected by analysts.
This first quarter profit was also higher than the previous record high of $15.2 billion the company registered in the fourth quarter of 2020.
Google reported quarterly sales of $55.3 billion translating to 34% increase from a similar quarter last year. This was also close to the sales $56.9 billion the company recorded in the previous quarter.
The high sales increased operating margins up to 30% for the first time since 2015. Ad sales for Google in the first quarter increased by 32% in comparison to the first quarter of the previous year.
These results indeed have been facilitated by movement restrictions imposed across the world which has pushed individuals to spending more time online to shop, learn, and work or even to seek entertainment.
During the reporting of the results the company’s Chief Financial Officer Ruth Porat said it’s still too early to predict the extent to which these changes in consumer behavior and advertising spend will endure.