Alphabet Q1 revenue increases 22 percent, shares surge

He was hired for a record salary with stock option from Google as well as its parent company Alphabet which was formed then.

There was equally stunning growth on the sales side as revenues rose 22 percent to $24.750 billion (£19.1bn) from $20.257 billion (£15.7bn) in the same year-ago quarter. Net income stands at $5.43 billion from the $4.21 billion of past year.

"YouTube revenues continue to grow at a significant rate, driven primarily by video advertising", Alphabet Chief Financial Officer Ruth Porat said during an earnings call.

And the company's Other Bets division - which includes things like Google Fiber and Nest smart thermostats - saw revenue jump 48% to $244 million.

The majority of growth in earnings seems to be coming from an increase in advertising revenues and in net earnings Google's up over a billion since this time past year. The stock price climbed to new highs on the strength of this report, trading up about 3 percent after hours.

Revenue in the three months ended in March rose 22%, year over year, to $24.75 billion, yielding EPS of $7.73.

The compensation committee of Alphabet Inc., Google's parent company, said that the compensation was paid keeping in mind Pichai's elevation and "numerous successful product launches", reported the CNN, citing regulatory filings by Alphabet Inc. The company is also investing more in machine learning, AI research and deep neural networks, in the hope to make all of Google's products that much better.

It is clear that advertising is the main money maker, after it posted advertising revenues of $21.41 billion (£16.5bn), or around 87 percent of Alphabet's total revenues.

Operating income came in at $6.568 billion for the quarter, while operating margin was 27%, both showing increases from the first quarter of fiscal 2016.

Aggregate paid clicks rose 44% year over year, while paid clicks on Google properties rose 53%.

In his 2016 shareholders letter, Google co-founder Larry Page highlighted Alphabet's various "Other Bets" projects and noted how the creation of Alphabet as a new holding company "has helped entrepreneurs build and run companies with the autonomy and speed they need".

Alphabet shares have increased 12 percent since the beginning of the year, while the Standard & Poor's 500 index has increased nearly 7 percent.

The company's total acquisition costs (TAC) were $4.63 billion.