Alphabet(US:GOOG) ZACKS·2025-04-25 15:30Core Insights - Alphabet's first-quarter 2025 earnings per share (EPS) of $2.81 exceeded the Zacks Consensus Estimate by 39.11% and grew 48.7% year over year [1] - Total revenues reached $90.234 billion, marking a 12% increase year over year (14% at constant currency) [1] Revenue Breakdown - Net revenues, excluding traffic acquisition costs (TAC), were $76.486 billion, surpassing the consensus mark by 1.27% and rising 13.2% year over year [2] - TAC amounted to $13.784 billion, reflecting a 6.2% year-over-year increase [2] - Google Cloud revenues surged 28.1% year over year to $12.260 billion, accounting for 13.6% of total revenues and beating the Zacks Consensus Estimate by 0.85% [3] - Google Services revenues increased 9.8% year over year to $77.264 billion, representing 85.6% of total revenues and exceeding the consensus estimate by 1.56% [4] - Google advertising revenues rose 8.5% year over year to $66.885 billion, making up 74.1% of total revenues and surpassing the consensus mark by 0.9% [4] - Search and other revenues grew 9.8% year over year to $50.702 billion, exceeding the Zacks Consensus Estimate by 0.83% [5] - YouTube's advertising revenues improved 10.3% year over year to $8.972 billion, beating the consensus mark by 0.31% [5] - Google subscriptions, platforms, and devices revenues were $10.396 billion, up 18.8% year over year, surpassing the consensus mark by 4.12% [7] - Other Bets' revenues were $450 million, down 9.1% year over year, missing the consensus mark by 6.75% [7] Profitability Metrics - Operating expenses were $59.628 billion, up 8.3% year over year, but as a percentage of revenues, this figure declined 230 basis points to 66.1% [8] - Total cost of revenues increased 16.76% year over year to $36.361 billion [8] - The operating margin expanded 230 basis points year over year to 20.2% [8] - Google Cloud's operating income was $2.177 billion, compared to $900 million in the year-ago quarter [9] Balance Sheet and Cash Flow - As of March 31, 2025, cash, cash equivalents, and marketable securities totaled $95.328 billion, slightly down from $95.657 billion as of December 31, 2024 [11] - Long-term debt remained stable at $10.886 billion as of March 31, 2025 [11] - Alphabet generated $36.15 billion of cash from operations in the first quarter of 2025, down from $39.113 billion in the previous quarter [12] - Capital expenditure was $17.197 billion, resulting in a free cash flow of $18.953 billion [12] - The board declared a quarterly dividend of 21 cents per share, a 5% increase from the previous quarter [12] Share Repurchase Authorization - On April 23, 2025, Alphabet's board authorized the repurchase of up to an additional $70.0 billion of its Class A and Class C shares [13]