Alphabet Revenues Underwhelm

Posted on July 26, 2022 by Paul Thurrott in Google with 7 Comments

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.”

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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Comments (7)

7 responses to “Alphabet Revenues Underwhelm”

  1. arjay

    It's almost like there is a recession.

    • Stabitha.Christie

      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.

      • lvthunder

        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.

  2. miamimauler

    "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"


    What a crazy world we live in when a 13% increase is considered underwhelming given the global issues on energy and inflation.

    I read MS has also reported 'disappointing' numbers despite an increase in profit. It's just ridiculous.


    Honestly folks, we all need to take a deep breath and re-evaluate how we rate these numbers.

    • Stabitha.Christie

      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.

      • nine54

        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.

    • Paul Thurrott

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