Google CEO Sundar Pichai speaks during the Google I/O keynote session at Shoreline Amphitheatre in Mountain View, California on May 7, 2019.
Josh Edelson | AFP | Getty Images
Alphabet reported weaker-than-expected earnings and revenue for the second quarter.
Here’s how the company did:
- Earnings per share (EPS): $1.21 vs $1.28 expected, according to Refinitiv
- Revenue: $69.69 billion vs $69.9 billion expected, according to Refinitiv
- YouTube advertising revenue: $7.34 billion vs. $7.52 billion expected, according to StreetAccount
- Google Cloud revenue: $6.28 billion vs. $6.41 billion expected, according to StreetAccount.
- Traffic acquisition costs (TAC): $12.21 billion vs $12.41 billion expected, according to StreetAccount
Revenue growth slowed to 13% in the quarter from 62% a year earlier, when the company was benefiting from the post-pandemic reopening and consumer spending was on the rise.
Advertising revenue increased just 12% to $56.3 billion, as marketers reeled in their spending to manage inflationary pressures.
Google Cloud, which fell short of revenue expectations, lost $858 million during the quarter. Other Bets, which includes self-driving car unit Waymo and life sciences unit Verily, made $193 million in revenue but lost $1.69 billion during the quarter.
The report comes days after Snap announced disastrous quarterly results and said it plans to slow hiring because “forward-looking visibility remains incredibly challenging.” In contrast to Snap, Alphabet shares rose slightly in extended trading despite the miss, as investors may have been expecting more troubling signs.
Alphabet shares have lost about a quarter of their value this year.
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