Alphabet Inc. (NASDAQ: GOOG, GOOGL) announced financial results for the quarter ended March 31, 2022. For the first quarter, Google advertising revenue grew about 22% to reach $54.66 billion, topping consensus expectations for $54.12 billion. However, YouTube advertising revenue grew just 14% to reach $6.87 billion, coming up short of estimates for $7.4 billion.
Google parent company Alphabet ‘s net profit dropped to $16.4 billion compared to last year’s $17.9 billion in the first quarter of this year, as its Search and Cloud businesses have expanded. Google Alphabet registered $68 billion in revenue for Q1 2022, a 23 per cent increase year-over-year.
Sundar Pichai, CEO of Alphabet and Google, said: “Q1 saw strong growth in Search and Cloud, in particular, which are both helping people and businesses as the digital transformation continues. We’ll keep investing in great products and services, and creating opportunities for partners and local communities around the world.”
Ruth Porat, CFO of Alphabet and Google, said: “We are pleased with Q1 revenue growth of 23% year over year. We continue to make considered investments in Capex, R&D and talent to support long-term value creation for all stakeholders.”
- Google Services includes products and services such as ads, Android, Chrome, hardware, Google Maps, Google Play, Search, and Google Services generates revenues primarily from advertising; sales of apps and in-app purchases, digital content products, and hardware; and fees received for subscription- based products such as YouTube Premium and YouTube TV.
- Google Cloud includes Google’s infrastructure and platform services, collaboration tools, and other services for enterprise customers. Google Cloud generates revenues from fees received for Google Cloud Platform services, Google Workspace collaboration tools, and other enterprise
- Other Bets is a combination of multiple operating segments that are not individually material. Revenues from Other Bets are generated primarily from the sale of health technology and internet
Unallocated corporate costs primarily include corporate initiatives, corporate shared costs, such as finance and legal, including certain fines and settlements, as well as costs associated with certain shared R&D activities. Additionally, hedging gains (losses) related to revenue are included in corporate costs.
Segment Operating Results
Quarter Ended March 31, 2021 2022
Operating income (loss):
|Google Services||$ 19,546||$ 22,920|
|Corporate costs, unallocated||(990)||(740)|
Total income from operations $ 16,437 $ 20,094
On April 20, 2022, the Board of Directors of Alphabet authorized the company to repurchase up to an additional
$70.0 billion of its Class A and Class C shares in a manner deemed in the best interest of the company and its stockholders, taking into account the economic cost and prevailing market conditions, including the relative trading prices and volumes of the Class A and Class C shares. The repurchases are expected to be executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans.
(Photo/ Credit:Alena Kravchenko)