How Alphabet achieved 17% growth in revenue in Q1

google for IndiaAlphabet Inc. said its revenue rose 17 percent year over year and fell 5 percent sequentially to $20.3 billion in the first quarter of 2016.

The currency related impact due to the U.S. dollar was to the tune of of $762 million or $593 million after the benefit of Alphabet’s hedging program.

Alphabet said it generated $9.4 billion (+21 percent) revenue from the U.S. market, $1.9 billion (+15 percent) from the U.K. and $9 billion (+14 percent) from rest of world revenue.

On quarter on quarter basis, Alphabet said its revenue dropped 9 percent in the U.S., flat in the U.K., and dipped 2 percent in rest of world.

Alphabet made an investment of $2.4 billion towards Capex (capital expenditure).

Google Sites revenue was $14.3 billion (+20 percent year-over-year and –4 percent sequentially). Year-on-year growth reflects substantial strength in Mobile Search due to the ongoing benefit from the improvement in ad formats.

Growth in YouTube revenue was significant, driven primarily by video advertising across TrueView and Google Preferred, with a growing contribution from app promotion.

Network revenue was $3.7 billion (+3 percent year-on-year and –11 percent sequentially).

Other revenue for Google was $2.1 billion (+24 percent year-over-year and –1 percent sequentially). Year-over-year performance was driven by Play as well as continued strong growth in cloud and apps and a nice contribution from hardware.

How Google achieved growth?

Innovation is the backbone of Google’s activities.

Google Inc. CEO Sundar Pichai said: “We have long invested in building the best machine learning team and tools, and we are seeing these efforts bear fruit in many ways. At Google, machine learning is helping us improve our products every day in search and many other areas like photos, maps and more.”

The technology company is seeing immense traction on Google Play and YouTube. YouTube on mobile alone now reaches more 18 to 34 and 18 to 49 year olds in the U.S. than any TV network, broadcast or cable.

Chrome surpassed 1 billion monthly active users on mobile alone in the first quarter of 2016.

Google has tied up with publishers and tech companies to accelerate mobile pages. Data shows that these pages load four times faster and use 10 times less data than traditional pages.

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