Alphabet has released its earnings report for the first quarter of the year, highlighting strong growth in the cloud department.
Despite trailing behind Amazon Web Services and Microsoft Azure, Google Cloud took in $2.78 billion for the first quarter, up 52 percent from $1.83 billion in Q1 2019.
Although the spike in revenue appears significant, it is difficult to put it into context, given that Alphabet only begun releasing directly comparable figures in the previous quarter.
Google Cloud Platform and G Suite were the driving forces behind the growth, with the company's video conferencing app Google Meet the standout performer, rivalling popular services such as Zoom and Microsoft Teams.
“Last week, we surpassed a significant milestone,” said CEO Sundar Pichai on the earnings call, VentureBeat reported. “We are now adding roughly three million new users each day and have seen a 30-fold increase in usage since January. There are now over 100 million daily Meet meeting participants.”
Overall, in the first quarter of 2020, Alphabet recorded $41.2 billion in revenue and a net income of $8.3 billion. The company also announced an earnings per share of $9.87, slightly lower than analyst expectations.
Total revenue grew year-on-year, but both net income and earnings per share are down. Advertising made up 82 percent of the company’s revenue for the quarter, hitting $33.8bn.
“Given the depth of the challenges so many are facing, it’s a huge privilege to be able to help at this time,” Pichai said in a statement. “People are relying on Google’s services more than ever and we’ve marshalled our resources and product development in this urgent moment.”