Alphabet, parent company of Google Inc., said its net income for the first quarter of the year fell to USD$4 billion compared to USD5 billion in 2016.
On a year on year basis, gross revenue fell to USD20 billion compared to USD24 billion. From a full year perspective, revenue rose by 17%.
The result shows that Alphabet’s growth will no longer be sustained by its advertising revenue which has now seen a year on year decline.
Ruth Porat, CFO of Alphabet Inc. said “Our excellent results represent a terrific start to 2017, with revenues up 22% versus the first quarter of 2016 and 24% on a constant currency basis. We clearly continue to benefit from our ongoing investments in product innovation and have great momentum in our new businesses across Alphabet,”