By Rebecca Heilweil
Alphabet, the parent company of Google, released its quarterly earnings report on Thursday, revealing that the company had boosted revenues by 19 percent from the same time last year.
Alphabet ($GOOGL) made nearly $39 billion this quarter, beating analyst expectations of about $38 billion. That number is also up from $36.3 billion the company produced in the first three months of this year.
While the report was released after the closing bell, after-hours trading showed that technology giant’s share prices had surged. The earnings report comes amid Alphabet’s struggle to recover its stock price from a sharp tumble that came at the end of April.
On a call with investors on Thursday, Alphabet CEO Sundar Pichai emphasized new features coming to the Google Assistant and Google Maps, changes to the company’s accessibility features, and improvements to how users’ control over privacy and data.
Analysts had been concerned over potential regulation of large technology companies, including Alphabet. At this point last year, Google was suffering the sting of a $5 billion antitrust fine imposed by the European Union.
Advertising remains about 80 percent of Alphabet’s overall business, which has drawn attention to the company’s rising costs of traffic acquisition. This quarter, the company reported $7.2 billion in spending on traffic, up from $6.4 billion from last year.
Russell Holly, a senior editor at Android Central, told Cheddar after earnings were released that these costs should only be expected to rise.
“It’s only going to continue to increase. We’re going to see more moving toward mobile devices, and Google’s been aware of this for a while,” he said.
Still, the company hasn’t matched the advertising growth that it saw in the first quarter. The company’s growth in paid clicks on Google properties was only 28 percent (over the same period last year), compared to 39 percent from the first quarter.
Holly added that investors are also nervous about YouTube, which faces increasing competition not only from Netflix, but new streaming products that Apple and Disney plan to debut in the coming months.