Alphabet misses the mark in its second quarter results

Alphabet

• The company posted $USD69.69 billion revenue, missing the expected $69.9 billion

Alphabet, the parent company of Google, has reported a dip in revenue in its 2022 second-quarter results ending June 30, 2022.

The company posted $USD69.69 billion in revenue, just missing the expected forecast of $USD69.9 billion. But it outperformed last year’s Q2 earnings of $USD61.8 billion.

YouTube advertising revenue fell short this quarter, reporting $USD7.34 billion instead of the expected $USD7.52 billion, however an improvement on 2021’s Q2 result of $USD7.002 billion.

Google Cloud failed to hit the expected $USD6.41 billion for this quarter’s results, reporting $USD6.28 billion.

APAC region revenue reported $USD11.710 billion in the 2022 second quarter results, up from $USD11.231 billion from the same quarter in last year.

Sundar Pichai, CEO of Alphabet and Google, said: “In the second quarter our performance was driven by Search and Cloud.

“The investments we’ve made over the years in AI and computing are helping to make our services particularly valuable for consumers, and highly effective for businesses of all sizes.

“As we sharpen our focus, we’ll continue to invest responsibly in deep computer science for the long-term,” Pichai added.

Ruth Porat, CFO of Alphabet and Google, said: “Our consistent investments to support long-term growth are reflected in our solid performance in the second quarter, with revenues of $69.7 billion in the quarter, up 13% versus last year or 16% on a constant currency basis.

“We are focused on responsible capital allocation in support of our growth opportunities,” she added.

Porat also described the current outlook as one of “uncertainty in the global economic environment” in a report by CNBC.

The results from the first quarter of 2022 showed revenue growth has slowed down in contrast to 2021.

Net profit for Alphabet dropped 8% to AUD $22.87 billion ($US16.44 billion) in the March quarter and share price dipped close to 5% or AUD $34.26 (US$24.62) per share, in contrast to last year’s AUD $25.1 billion (USD $17.93 billion) or AUD $36.57 (US$26.29) per share.

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