Despite most tech companies making losses during the ongoing economic conditions, Google managed to stay afloat. This was described by it’s Q2 2022 earnings report, where it recorded slight growth in revenue compared to last year’s quarter.
Major drivers of Google’s revenue include Search and Cloud, together bringing $45+ billion in Q2 2022. Also, the advertising wing, including YouTube, recorded a $56 billion revenue. Though Google did lose some money in other segments, it’s share price rose in the after-market hours.
Alphabet’s Q2 2022 Earnings Report
Beating the analysts’ estimates, Google recorded a slight surge in Q2 2022 revenue – recording $70 billion. This gained traction since most other major tech companies have recorded losses in revenue due to ongoing economic downturns.
While a $70 billion revenue is applauded, Google felt down in year-on-year growth, noting a 13% in Q2 2022 – down from Q2 2021’s 62% year-over-year increase compared to it’s previous year. Yet, Google pulled off in other segments like revenue from Cloud ($6.2 billion) – a 35% increase over Q2 2021.
Also, the Search segment brought in $40 billion in the same period. The advertising department (including YouTube) noted a $56 billion revenue, while Alphabet’s VC funding wing, Other Bets, lost $1.7 billion.
Overall, Alphabet reported an operating income of $19 billion and a net income of $16 billion – which is $18.5 billion down from last year’s Q2. Yet, it managed to have a positive impact on the share price in after-market hours, mostly due to low expectations by the investors, but performing well.
Talking at the earnings call and later at a press conference, Alphabet CEO Sundar Pichai stressed the company’s investments in AI computing. He even teased the upcoming AR gadgets, including the glasses teased at the I/O event this year.
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