- Google Cloud revenue topped analysts' expectations.
- Google Cloud is one of Alphabet's primary business segments. It provides developers with a cloud platform for building, testing, and deploying applications.
- Companywide earnings and revenue missed expectations.
|Google (Alphabet) Earnings Results|
|Metric||Beat/Miss/Match||Reported Value||Analysts' Prediction|
|Earnings Per Share||Miss||$1.06||$1.25|
|Google Cloud Revenue||Beat||$6.9B||$6.7B|
Source: Predictions based on analysts' consensus from Visible Alpha
Google (Alphabet) Financial Results: Analysis
Alphabet (Google) Inc. (GOOGL, GOOG), the third-largest tech company by market value, missed analysts' estimates for profit and revenue for the third quarter amid a challenging foreign exchange environment and falling YouTube ad sales. Its shares dropped.
A strengthening dollar has hurt companies with a broad international scope such as Alphabet. A cooling economy and rampant inflation have also damaged advertising budgets, which in turn slows revenue for Alphabet's key YouTube ads business. Increasing competition from TikTok has also undermined ad sales.
Google Cloud Revenue
At Google Cloud, a primary business segment along with Google Services, revenue grew 38% to $6.9 billion, beating analyst predictions. The cloud segment provides developers with a scalable and reliable platform for building, testing, and deploying applications. It also offers workspace collaboration tools, including apps such as Gmail, Docs, Drive, Calendar, and Meet.
GOOGL Outlook and Stock Performance
Alphabet didn't provide forward guidance.
Shares of GOOGL fell by 5% in after-hours trading as of 4:12 p.m. New York Time on Oct. 25. The company's stock has dropped by 24% in the last year, compared with a 15% decline in the the S&P 500 Index.
Alphabet's next earnings report (for Q4 FY 2022) is expected to be released on Jan. 31, 2023.
CompaniesMarketCap.com. "Largest Tech Companies by Market Cap."
Alphabet Inc. "Alphabet Announces Third Quarter 2022 Results," Pages 1-2.
Visible Alpha. "Financial Data."
Wall Street Journal. "Three Things Marketers Should Know About Ad Spending Trends."
Alphabet Inc. "Form 10-K for the Fiscal Year Ended Dec. 31, 2021," Pages 6 & 7.
Yahoo! Finance. "Alphabet Inc. (GOOGL)."
TradingView. "Price Chart: GOOGL and S&P 500."
MarketScreener. "Alphabet Inc. (GOOGL)."