Executive Summary

• Alphabet reported 1Q16 revenues of $20.3 billion, up 17.4% year over year. Non-GAAP EPS was $7.50, missing the consensus estimate of $7.96.
• Google websites were the primary revenue growth driver, up 20.1%, but Google Network Members’ website revenue grew by only 3%.
• Aggregate paid clicks increased by 29% year over year, and paid clicks on Google websites increased by 38% year over year alongside continuing decreases in cost per click.