The spread of the new coronavirus has had a major impact on social systems and people's lives. As people are asked to refrain from going out of their homes, the economy and employment are becoming unstable. In the midst of all this, there is one company that is doing well, and that is Google. Google is owned by the American multinational conglomerate Alphabet, one of the big four tech giants known as GAFA (Google, Apple, Facebook, and Amazon).
On April 27, 2021, Alphabet announced its financial results for the first quarter of fiscal year 2021, which ends on March 31, 2021. The company reported a 34% YoY increase in quarterly revenue to $55.3 billion, a 162% YoY increase in net income to $18 billion, and net income per share of $26. This section discusses the factors that led to the growth in the midst of the new coronavirus pandemic.
One of the factors that drove Google's growth was nest egg demand. During the prolonged period of self-restraint during the coronavirus outbreak, people of all ages and both sexes probably had a lot of time to spend at home. In such a situation, there was a high demand for watching videos on Youtube. As more and more people used technological devices to watch videos, Youtube's advertising revenue grew 49% YoY to $6 billion. In addition to the expansion of online consumer activity, the broad growth in advertising revenue contributed to this growth.
Next is the shift to DX in the enterprise. The need to create an environment where work can be done seamlessly both inside and outside the office has increased dramatically as people reevaluate the way they work for productivity and operational efficiency. With the surge in demand for Internet-related services associated with telework and other activities, the cloud computing business also experienced rapid growth (+46% YoY). The shift to online services and the cloud for both consumers and businesses is only going to accelerate.
The results for the first quarter of 2021 are a testament to Alphabet's commitment to providing reliable services to help people around the world, as CEO Sundar Pichai said in the earnings release. If the new coronavirus pandemic continues, both companies and individuals will still have to change. In order for the company to continue to grow, it will need to continue to innovate for the benefit of those who are forced to change.
First Quarter 2021 Results Net sales: $55.3 billion (+34% YoY) Operating income: $16.4 billion (+106% YoY) Operating margin: 30% (vs. 19% in Q1 FY09) Net income: $17.9 billion (+162% YoY) EPS: $26.29 (+166% YoY) Operating cash flow: $19.3 billion (+68% YoY) Free cash flow: $13.3 billion
Segment Results Google Services: $51.2 billion (+34% YoY) Google Ads: $44.7 billion (+32% YoY) Google Search & Other: $31.9 billion (+30% YoY) YouTube Ads: $6.0 billion (+49% YoY) Google Network: $6.8 billion (+30% YoY) Google Cloud: $4 billion (+46% YoY)
Operating profit Google Services: $19.5 billion (+69% YoY) Google Cloud: $(9.7) billion (vs. $(1.73) billion in the same period last year)
Revenue by Region EMEA: $17.0 billion (+33% YoY) APAC: $10.5 billion (+44% YoY) Other Americas: $2.9 billion (+35% YoY) U.S.: $25 billion (+33% YoY)