Alphabet Revenues Underwhelm

Google’s parent company Alphabet reported that it earned a net income of $16 billion on revenues of $69.6 billion in the quarter ending June 30. The latter is up 13 percent year-over-year (YOY), but lower than expected.

“In the second quarter our performance was driven by Search and Cloud,” Google and Alphabet CEO Sundar Pichai said. “The investments we’ve made over the years in AI and computing are helping to make our services particularly valuable for consumers, and highly effective for businesses of all sizes. As we sharpen our focus, we’ll continue to invest responsibly in deep computer science for the long-term.”

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As with Microsoft, which also disappointed investors, Google says it is focused on prioritizing “growth opportunities” as it tries to navigate through troubling financial times.

Google’s total revenues were $69.69 billion, or just over 100 percent of Alphabet’s revenues. (Google’s “other bets” lost $1.69 billion during the quarter.) $56.3 billion of that came from advertising, so about 81 percent of Google’s revenues came from advertising. Google Cloud revenue was $6.28 billion.

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Conversation 7 comments

  • arjay

    Premium Member
    26 July, 2022 - 7:23 pm

    <p>It’s almost like there is a recession.</p>

    • Stabitha.Christie

      26 July, 2022 - 8:28 pm

      <p>A recession is negative growth for two consecutive quarters. 13% growth, by definition, isn’t negative growth. There is a fairly sizable difference between not meeting growth expectations and a recession. </p>

      • lvthunder

        Premium Member
        27 July, 2022 - 12:08 pm

        <p>He’s talking about the USA not Google. It’s going to made official tomorrow. Judging by how the Biden Administration is trying to change the definition of a recession you know it’s not going to be a good number.</p>

  • miamimauler

    26 July, 2022 - 7:27 pm

    <p>"<span style="color: rgb(0, 0, 0);">Google’s parent company Alphabet reported that it earned a net income of $16 billion on revenues of $69.6 billion in the quarter ending June 30. The latter is up 13 percent year-over-year (YOY), but lower than expected"</span></p><p><br></p><p><span style="color: rgb(0, 0, 0);">What a crazy world we live in when a 13% increase is considered underwhelming given the global issues on energy and inflation.</span></p><p><span style="color: rgb(0, 0, 0);">I read MS has also reported ‘disappointing’ numbers despite an increase in profit. It’s just ridiculous.</span></p><p><br></p><p><span style="color: rgb(0, 0, 0);">Honestly folks, we all need to take a deep breath and re-evaluate how we rate these numbers. </span></p>

    • Stabitha.Christie

      26 July, 2022 - 8:30 pm

      <p>Both Google and Microsoft did really well over the last two years and it’s understandable that investors would like to see that continue. There will be a re-evaluation as that growth proves unsustainable but there will also be disappointment as it slows. Kinda how the martlet works. </p>

      • nine54

        Premium Member
        27 July, 2022 - 10:14 am

        <p>Of course investors would like to see that growth continue, but over what time horizon? For longer-term investors, these results likely do not change the overall investment thesis for the company, a point that often is left unsaid.</p>

    • Paul Thurrott

      Premium Member
      27 July, 2022 - 7:57 am

      The issue is that growth didn’t meet expectations. Azure growth was 40 percent and that was considered a huge disappointment.

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