Google Cloud closed the first quarter of 2021 on a high note, posting strong revenue growth and an improved bottom line for Q1.

Google Cloud, which includes both Google Cloud Platform (GCP) and its Workspace (formerly G Suite) cloud computing services and collaboration tools, posted a 46% year-over-year surge in revenues to $4.05 billion. “GCP revenue growth rate once against was meaningfully above cloud overall,” said Sundar Pichai, CEO of Google and parent company Alphabet, on a conference call with investors.

“Customers continue to unlock the value of the Google ecosystem by signing multi-year, multi-product partnerships with companies like Global Payments and Grupo Global,” Pichai continued. “Just yesterday, we announced a new Google-wide partnership with Univision, which is migrating to our cloud.”

Meanwhile, Google Cloud posted an operating loss of $974 million during Q1, compared with a $1.73 billion loss a year earlier. This also represents a quarter-over-quarter improvement for the cloud giant, which reported an operating loss of $1.24 billion for the fourth quarter of 2020.

Google only last quarter begun disclosing its Cloud business operating losses.

Looking ahead, executives sounded cautiously optimistic as communities and economies recover from the ongoing COVID-19 pandemic. While the larger company’s spending will remain cautious in some areas during the second quarter — CFO Ruth Porat singled out travel, entertainment, and marketing events — and may be affected by the pace of recovery globally, “as for Google Cloud, our approach to building the business has not changed,” she said. “We remain focused on revenue growth, and we will continue to invest aggressively in products and our go to market organizations, given the opportunity.”

Just last month, Pichai said Google plans to spend $7 billion this year on data centers and offices across the U.S. Additionally, the parent company’s hiring has significantly tilted toward Google Cloud, with job postings for the platform contributing to around 30% of total jobs since January 2020, according to analysis from GlobalData.

Overall during Q1, Alphabet grew its net income 162% year over year. The company reported net income of $17.93 billion during the first quarter of 2021, and diluted earnings per share of $26.29.

Its total revenue hit $55.31 billion, up 34% year over year.