Google's advertising revenue and YouTube revenue further decline, while cloud business Google Cloud finally turns profitable
Alphabet, Google's parent company, has announced its financial results for the first quarter of 2023 (January-March).
GOOG Exhibit 99.1 Q1 2023 - 2023Q1_alphabet_earnings_release.pdf
(PDF file)
Alphabet Earnings: Google Ad Revenue Drops for Second Straight Quarter - WSJ
https://www.wsj.com/articles/alphabet-google-googl-q1-earnings-report-2023-562dbb62
Alphabet's overall revenue in 2023 was $69,787 million (approximately ¥9,330 billion), an increase of 3% year-on-year. Operating profit is 17,415 million dollars (about 2.33 trillion yen), and the operating profit margin to revenue is 25%. Net profit was $ 15,051 million (about 2 trillion yen).
Below is the breakdown. 'Google Services total' revenue was 61,961 million dollars (about 8.3 trillion yen), an increase of 0.8% year-on-year. Among them, the revenue of 'Google advertising' decreased by 0.2% year-on-year to 54.548 billion dollars (about 7.3 trillion yen). And among Google ads, the revenue of 'Google Search & other' increased by 1.8% year-on-year to 40,335.9 million dollars (about 5.4 trillion yen), and 'YouTube ads ” decreased by about 2.6% year-on-year to $ 6,693 million (about 900 billion yen), and “Google Network” decreased by 8.3% year-on-year to $ 7,496 million (about 1 trillion yen) was.
It was the third time since the company went public in 2004 that Google's advertising business revenue has declined year-on-year, and it has been the second consecutive quarterly decline. However, the Wall Street Journal, an economic newspaper, commented, ``A decline in revenue from the advertising business was expected among investors, and the extent of the decline was rather smaller than expected.''
YouTube's advertising revenue declined year-on-year for the third consecutive quarter, but the decline was smaller than in the fourth quarter of 2022, which was about 7.8% lower than the same period last year, so Google's Ruth Porat The chief financial officer (CFO) commented, 'There were signs of stability in YouTube's advertising revenue.'
Google's parent company Alphabet announces financial results for the fourth quarter of 2022, overall advertising revenue including YouTube decreased by about 4% year-on-year-GIGAZINE
The cloud computing business is doing well against the advertising business whose revenue is declining, and the revenue of 'Google Cloud' is 7.554 billion dollars (about 1.1 trillion yen), a large growth of 28% compared to the same period last year I showed In addition, the Google Cloud division had a deficit of $706 million (about 94 billion yen) in the first quarter of 2022, but it turned out to be $191 billion (about 25.5 billion yen) in the first quarter of 2023. yen).
Alphabet and Google CEO Sundar Pichai said, 'With strong Google Search and strong momentum in Google Cloud, we are pleased with our performance in the first quarter of 2023. Our goal is to provide users with the most useful answers, and we believe that great opportunities lie ahead as we continue to build on our track record of innovation.' . “We remain committed to delivering long-term growth and restructuring our cost base to create the ability to invest in the most attractive growth areas,” added Porat.
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