Alphabet released its first quarter results, beating analysts’ expectations and turning a profit for the first time in its cloud unit.

The company reported $69.8 billion in revenue, an increase of 3% year over year. Revenue beat analysts’ expectations of $69.8 billion. Despite the good news, YouTube advertising was down to $6.7 billion, a drop of 3%.

Google Cloud was a bright spot for the company, turning its first-ever profit. The unit generated $7.45 billion in revenue and $191 million in operating income. Similarly, Google Search accounted for nearly $40.4 billion, up from $39.6 billion year over year.

“We are pleased with our business performance in the first quarter, with Search performing well and momentum in Cloud,” said Sundar Pichai, CEO of Alphabet and Google. “We introduced important product updates anchored in deep computer science and AI. Our North Star is providing the most helpful answers for our users, and we see huge opportunities ahead, continuing our long track record of innovation.”

“Resilience in Search and momentum in Cloud resulted in Q1 consolidated revenues of $69.8 billion, up 3% year over year, or up 6% in constant currency,” Ruth Porat, CFO of Alphabet and Google. “We remain committed to delivering long-term growth and creating capacity to invest in our most compelling growth areas by re-engineering our cost base.”