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Google Parent Alphabet’s Quarterly Revenue Rises 3% Due To Search, Cloud Momentum
Google Cloud turned in a profit as revenue from this segment grew by 28 per cent, the fastest of any of the company's main business segments
Photo Credit : shutterstock
Alphabet Inc.’s revenue for FY23 quarter ended 31 March, 2023 rose 3 per cent year-over-year (YoY) amd 6 per cent in constant currency to USD 69.8 billion from USD 68 billion in the corresponding quarter in 2022.
Commenting on the results, Ruth Porat, CFO of Alphabet and Google said, “Resilience in Search and momentum in Cloud resulted in Q1 consolidated revenues of USD 69.8 billion, up 3 per cent year over year, or up 6 per cent in constant currency. 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.”
Google Cloud turned in a profit as revenue from this segment grew by 28 per cent, the fastest of any of the company's main business segments.
During the first quarter of 2023, Google’s parent company recorded employee severance and related charges of USD 2 billion, representing the majority of expected costs associated with this action.
The company also mentioned that it was taking actions to optimise its global office space. “[..] and as a result we recorded charges related to office space reductions of USD 564 million in the first quarter of 2023. We may incur additional charges in the future as we further evaluate our real estate needs,” it mentioned.
Alphabet’s first quarter ad sales saw a dip at USD 54.55 billion in comparison to the corresponding quarter in 2022. But the ad sales beat analyst estimates of USD 53.71 billion.
During the quarter, YouTube’s ad revenue was reported to be at USD 6.69 billion.
In a statement, Sundar Pichai, CEO of Alphabet and Google said, “We are pleased with our business performance in the first quarter, with Search performing well and momentum in Cloud. 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.”
USD 70 Bn Stock Buyback
Alphabet’s board has authorised the company to repurchase up to an additional USD 70 billion of its Class A and Class C shares.