Alphabet Inc Class A (NASDAQ: GOOGL) stock lost over 8.2% on 30th April, 2019 (as of 2:29 pm GMT-4; Source: Google finance) as the firm posted lower than expected results for the first quarter of FY 19. Alphabet has reported first-quarter earnings of $6.66 billion after removing traffic-acquisition costs a year ago in the same period. Cash CapEx for the quarter was $4.6 billion, which I will discuss in the Google segment results. Operating cash flow was $12 billion with free cash flow of $7.4 billion. GOOGL ended the quarter with cash and marketable securities of approximately $113 billion.
Moreover, with respect to GOOGL’s revenues by geography, US revenues were $16.5 billion, up 17% year-over-year, EMEA revenues were $11.8 billion, up 13% year-over-year and up 16% in constant currency, due to the weakening of the euro and the British pound. APAC revenues were $6.1 billion, up 27% versus last year and up 31% in constant currency, reflecting primarily the weakness of the Australian dollar and the Indian rupee. Other Americas revenues were $1.9 billion, up 10% year-over-year and up 21% in constant currency, reflecting primarily the weakening of the Brazilian real and Argentine peso.
Further, on a consolidated basis, total cost of revenues, including TAC, was $16 billion, up 19% year-on-year. Other cost of revenues on a consolidated basis was $9.2 billion, up 27% year-over-year, primarily due to Google-related expenses. The biggest contributor was costs associated with the data centers and other operations, including depreciation, followed by content acquisition costs, primarily for YouTube and mostly for the advertising supported content, but also for the newer subscription businesses, YouTube Premium and YouTube TV, which have higher CAC as a percentage of revenues.
GOOGL in the first quarter of FY 19 has reported the adjusted earnings per share of $9.50, missing the analysts’ estimates for the adjusted earnings per share of $10.60, according to FactSet. Alphabet’s earnings would have been $11.90 a share if the company was not fined $1.7 billion out of Europe for its online-advertising practices. The company had reported the adjusted revenue growth of 17 percent to $29.48 billion in the first quarter of FY 19, missing the analysts’ estimates for revenue of $30.04 billion.
Additionally, the Google segment, revenues were $36.2 billion, up 17% year-over-year. Google Sites revenues were $25.7 billion in the quarter, up 17% year-over-year. Network revenues were $5 billion, up 8% year-on-year, continuing to reflect the performance of the primary drivers of growth, AdMob, followed by Google Ad Manager.