LA Private

Alphabet’s dividend debut and soaring revenue

Alphabet (Google) has transitioned into the sphere of mundane industrials, aligning itself with the likes of Apple and Meta by initiating dividend payments.

This significant move follows the company’s revelation in its March quarterly report, showcasing a notable 15% surge in revenue to $US80.5 billion, coupled with an increase in earnings across its primary business segments, including advertising, search, YouTube, and cloud services. Remarkably, this surge marks the fastest revenue growth rate since early 2022.

Moreover, the bolstering effect of an additional $US70 billion buyback has notably uplifted the shares, resulting in a remarkable surge of over 13% in after-hours trading following a slight decline in regular trading.

While the dividend payout stands at a modest 20 cents per share (compared to Apple’s 24 cents per share), it is more symbolic than substantive in terms of returning tangible income to shareholders. Nevertheless, Alphabet has expressed its commitment to potentially increasing cash dividends in the future.

Delving deeper into the financial performance, total advertising revenue for the three-month period ending in March amounted to $US61.7 billion, marking a notable increase from $US54.5 billion in the corresponding period of 2023.

Within this, YouTube ads saw a robust increase to $US8 billion from $US6.7 billion, while Google Search continued to dominate ad spending, reaching $US46 billion, up from $US40.3 billion.

Additionally, both Google Services and Cloud Services experienced notable sales growth, further solidifying Alphabet’s financial position and market presence.