"Our investments are driving great experiences for users, strong results for advertisers, and new business opportunities for Google and Alphabet", Ms. Porat added.
Alphabet reported two different profit figures to account for a $5 billion fine the European Union imposed last week for violating competition law with Google's Android mobile software. Google is appealing the ruling. The company had been plagued by similar scandals throughout previous year.
In March, the research firm eMarketer estimated that Google would capture about 37% of digital ad spending in the United States this year, down from nearly 39% in 2017.
Revenue was $32.7 billion for the quarter, with Google's advertising business accounting for most of that ($28 billion). In all, it's the same trend: it costs more to drive traffic to Google's advertising, and the cost per click is going down. You can use them to surf otherwise seedy public WiFi with more security and privacy.
Alphabet shares soar despite hit to profit from Google’s EU fine
Alphabet has been aggressively looking to expand in several other avenues, right from cloud computing to computers to the voice assistant market, dominated by Amazon's Alexa.
Pichai was also circumspect about the company's cloud business, so as not to spoil expected announcements at Google Cloud Next '18, a conference focused on the Google Cloud Platform that opens in San Francisco on Tuesday. "If Google continues to go unchecked, their dominance will be extreme". Google's capital spending climbed to US$5.3 billion, up 87 per cent from the same period in 2017. Still, that was 23 percent of ad revenue, down from 24 percent in the first quarter of 2018.
"TAC came in lower than expectations which is a clear positive takeaway from the quarter", Dan Ives, head of technology research at GBH Insights, wrote in a note to investors. On top of this, $4.4 billion came from its "other revenues" section which includes the Play Store and sales of consumer devices such as Pixel phones, Google Home speakers, and Chromecasts.
On a call with financial analysts, chief executive Sundar Pichai said it was too early to say how the changes requested by regulators would affect the firm's business over the long term.
Alphabet's "other bets", investments in less established ventures like Calico, Fiber, Nest, Verily, and Waymo, posted an operating loss of $732m, about $100m more than the year-ago quarter, on revenue of $145m.