Alphabet shares dove more than five percent in afterhours trading Thursday after the technology giant’s first quarter report failed to meet expectations.
The company’s earnings per share of $7.50 missed analyst expectations of $7.97 by a full 47 cents, while revenue of $20.26 billion fell shy of the mark by $110 million.
Alphabet CFO Ruth Porat, however, stood by the earnings.
“Our Q1 results represent a tremendous start to the year with 17 percent revenue growth year on year and 23 percent growth on a constant currency basis,” Porat said in a statement. “We’re thoughtfully pursuing big bets and building exciting new technologies, in Google and our Other Bets, that position us well for long term growth.”
In a year-over-year comparison, Alphabet’s revenues were up 17 percent from $17.26 billion in the first quarter 2015. The company’s Google segment also saw revenue gains year over year, with a 20 percent revenue increase for Google websites to $14.3 billion and a 16 percent increase in Google advertising revenues to $18 billion.
Revenues for the company’s Other Bets segment, which includes Google Fiber, Nest and self-driving cars, jumped 108 percent to $166 but came with an operating loss of $802 million.
Paid clicks on Google websites were up 38 percent year-over-year but down four percent sequentially. The cost-per-click on Google websites was down 12 percent from the same quarter last year.
