Alphabet reports miss on earnings and revenue

Alphabet CEO Sundar Pichai gestures while speaking during a discussion on artificial intelligence at the Bruegel European economic think tank in Brussels, Belgium, on Jan. 20, 2020.

Revenue and earnings for the first quarter were lower than expected. The stock fell in extended trading.

The results are here.

• Earnings per share (EPS): $24.62 per share, vs. $25.91 expected, according to Refinitiv

• Revenue: $68.01 billion, vs. $68.11 billion expected, according to Refinitiv

• YouTube advertising revenue: $6.87 billion vs. $7.51 billion expected, according to StreetAccount
• Google Cloud revenue:  $5.82 billion vs. $5.76 billion expected, according to StreetAccount
• Traffic acquisition costs (TAC): $11.99 billion vs. $11.69 billion expected, according to StreetAccount

The revenue for the period was $68.01 billion, a 23% increase over the same period last year. In the first quarter of the year, the economy grew 34%.

Advertising revenue for the quarter was up from the year before.

The revenue for the quarter fell short of expectations. When users were mostly at home on their devices, the video site was a beneficiary. TikTok has captured a growing share of the social media video market.

The cloud business was a bright spot in the quarter, growing 44% and beating estimates as more enterprises shift their workload away from their own data centers. The cloud division is still losing money, with an operating loss of $931 million, compared to $974 million a year earlier.

The Other Bets, which includes its life sciences companies and self-driving car unit, brought in $440 million compared to $198 million the year prior.

The metric used to show how much the company pays other websites to get traffic came in higher than expected.

The other revenue segment, which includes hardware, Play Store, and non-advertising YouTube revenue, was $6.83 billion, slightly higher than the prior year.

Cramer looks at earnings reports.