What you need to know
- In Q4 2022, Alphabet had revenue of $76.05 billion, a slight increase compared to the same period last year.
- Earnings were $13.62 billion ($1.05 per share), compared with $20.64 billion ($1.53 per share) last year.
- These are the first revenues reported after Google laid off 6% of its workforce, or 12,000 people, as it faces new antitrust lawsuits and is in competition with Microsoft’s investment in OpenAI’s ChatGPT. facing.
Google’s parent company Alphabet slightly underperformed analyst expectations in its fourth-quarter 2022 earnings report released on February 2.
The company’s total revenue was $76.05 billion, up from $73.3 billion a year ago. According to MarketWatch, analysts surveyed by FactSet expect the company to have total revenue of $76.2 billion, adding, “Sales are in line with last year’s results, and earnings are up from his year-ago holiday season. We expect it to decrease.”
“We are redesigning our cost structure in a lasting way to create financially sustainable, vibrant and growing businesses across Alphabet,” CEO Sundar Pichai said in an earnings call. We are on an important journey to build on
Jesse Cohen, senior analyst at Investment.com, said Alphabet’s poor performance this quarter “proves it’s not immune to the challenges facing the digital sector.”
“The search giant underperformed expectations in nearly every business unit, most importantly in the core ad search segment. Alphabet has been adversely affected by exacerbating macroeconomic headwinds such as sharp inflation and fears of a possible recession,” Cohen wrote.
Ad revenue fell to $59 billion from $61.2 billion a year ago, according to the report. Analysts expected him to make $60.44 billion. Ad revenue on YouTube fell from $8.63 billion to his $7.96 billion.
The decline in ad sales reflects changes in advertising models. According to Bank of America global research analyst Justin Post, Yahoo Finance said that “advertiser spending was ‘soft’ in the fourth quarter and will be ‘weak’ in the first quarter of 2023.” reporting.
It’s also the first earnings Google announced since laying off 12,000 people, or 6% of its workforce.
Pichai said at the time that the company had faced “dramatic growth” over the past two years and had hired more people to match that growth. .
The company also faces potential competition from Microsoft after investing in OpenAI’s ChatGPT.
“Long-term investments in deep computer science have put us in a very strong position when AI reaches an inflection point. We’re excited about the AI-driven leap we’re about to make.We’re also seeing a lot of momentum in the cloud, YouTube subscriptions, and Pixel devices.We’re redesigning our cost structure in a lasting way to make it financially viable across Alphabet. We are on an important journey towards building a sustainable, vibrant and growing business,” Pichai said in its earnings report.
