Google CEO Sundar Pichai speaks through the Google I/O keynote session at Shoreline Amphitheatre in Mountain View, California on, may 7, 2019.
Josh Edelson | AFP | Getty Images
Here’s the way the company did:
- Earnings per share (EPS): $1.21 vs $1.28 expected, in accordance with Refinitiv
- Revenue: $69.69 billion vs $69.9 billion expected, in accordance with Refinitiv
- YouTube advertising revenue: $7.34 billion vs. $7.52 billion expected, in accordance with StreetAccount
- Google Cloud revenue: $6.28 billion vs. $6.41 billion expected, in accordance with StreetAccount.
- Traffic acquisition costs (TAC):$12.21 billion vs $12.41 billion expected, in accordance with StreetAccount
Revenue growth slowed to 13% in the quarter from 62% per year earlier, once the company was profiting from the post-pandemic reopening and consumer spending was increasing.
Currency fluctuations from the strengthening dollar knocked 3.7 percentage points off revenue growth, CFO Ruth Porat told CNBC’s Deirdre Bosa. Porat said the effectiveness of the dollar will hit next quarter’s results even harder.
Porat also characterized the existing outlook as you of “uncertainty in the global economic environment.”
Advertising revenue increased just 12% to $56.3 billion, as marketers reeled within their spending to control inflationary pressures. The most known deceleration was in the YouTube division, where sales rose 5% after jumping 84% in exactly the same period this past year.
As well as the overall pullback in ad spending, YouTube can be facing heightened competition from TikTok in short-form videos.
The report comes days after Snap announced disastrous quarterly results and said it plans to slow hiring because “forward-looking visibility remains incredibly challenging.” As opposed to Snap, Alphabet shares rose slightly in extended trading regardless of the miss, as investors might have been expecting more troubling signs.
Revenue in Alphabet’s Other Bets segment, which include self-driving car unit Waymo in addition to some health-tech projects and the business’s venture arms, rose by $1 million from the year earlier to $193 million. It lost $1.69 billion through the quarter.
Google Cloud, which fell lacking revenue expectations, lost $858 million through the quarter. The cloud division is wanting to take share from Amazon Web Services and Microsoft Azure, the very best two players on the market. Microsoft said on Tuesday that revenue from Azure along with other cloud services grew 40% in the time.
Alphabet said its headcount rose 21% to 174,014 full-time employees from 144,056 the entire year prior. However, the business said last month it’ll slow the pace of hiring and investments through 2023, and CEO Sundar Pichai told employees in a memo, weren’t immune to economic headwinds.
Alphabet shares have lost in regards to a quarter of these value this season.
That is breaking news. Please check back for updates.