Google’s earnings fell short of expectations.
These figures come at a time when Google is working to diversify its revenue streams, partly to reduce its reliance on search. Due to low revenue, Google’s earnings fell short of expectations.
Alphabet, the company that owns Google, reported first-quarter results that fell short of analyst predictions because the search engine’s revenue was lower than expected.
Alphabet’s $68 billion in sales for the three months that ended on March 31 fell just short of the $68.1 billion analysts surveyed by Yahoo Finance had predicted. The overall earnings per share came to $24.62, which was behind the projected $25.94.
The results were poorer than anticipated at a time when Google is working to diversify its revenue streams, partly to reduce its reliance on search. More than 90% of the search market is under the company’s control, and they use it to make money by selling ads against search terms and results.
Google is extending its cloud computing services, which compete with Amazon’s AWS and Microsoft’s Azure, as part of its push to diversify income. To $5.82 billion, Google’s cloud’s revenue increased by more than 40% over the previous year. At the unit, losses decreased.
Google’s revenue is still driven on advertising. The advertising market was probably worse, which reduced overall revenue due to a weakening global economy.
Google also announced that its board has approved a share repurchase program, promising to buy back an extra $70 billion in shares. In after-hours trading, the company’s stock dropped 2.8% to $2,324.00.
Ruth Porat, CFO, stated on a conference call with investors that the firm had aggressively grown during the quarter through investments in data centers and hiring personnel. At the conclusion of the first quarter, the corporation had approximately 24,000 more employees than it did a year earlier. The business also invested in marketing and sales.
Analysts were directed to YouTube Shorts, a TikTok rival that debuted last year, by executives. According to CEO Sundar Pichai, YouTube clips receive 30 billion daily views. With a $100 million fund, the business is pushing producers to produce content for the platform.
Even so, TikTok dominates the market for short-form videos, a position it is unlikely to relinquish anytime soon.
Many businesses, including Google, left Russia after it invaded the nearby Ukraine. Porat claimed that last year, about 1% of Google’s revenue came from Russia.