Alphabet reported that its first-quarter revenue increased 22% to $24.75 billion from $20.26 billion in the same period previous year.
The company's hardware business also started gaining traction after Google released a pair of high-profile hardware products a year ago - the Pixel phone and the Google Home, a smart speaker like Amazon's Echo.
The two behemoths represented 99% of the growth in the industry for digital advertising during 2016.
"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. Analysts had been expecting about $24.2 billion in revenue and earnings of $7.40 per share.
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 a year ago. The company reported $9.36 earnings per share (EPS) for the quarter, missing the Zacks' consensus estimate of $9.64 by $0.28. Google executives are so optimistic about the tech giant's cloud business, selling computing power to companies over the internet, they say it can one day eclipse Google's massive advertising business.
There were plenty of big numbers as the gadget firms went spreadsheet insane, with Amazon coming out the big winners as they soared past the analyst expectations with their quarterly report.
Alphabet's other businesses such as its Verily Life Sciences, Google fiber, and Nest has overall been able to generate around $244 million during the fourth quarter of 2016 up by $165 million or 48% from the first quarter of 2016.
This performance came despite fears of the impact on sales of some advertisers' decision to withdraw from Google's YouTube video platform after it was discovered that some brands' advertisements were being placed alongside videos featuring extremist content.
To be sure, Google's cloud venture is still much smaller than market leader Amazon.com Inc's Amazon Web Services and Microsoft Corp's Azure. The Company's segments include Google and Other Bets. That saw his total compensation rise from $100.6 million to $199.35 million - not bad for your second year on the job.