Google ad sales take hit as growth slows - Mobile World Live

Google ad sales take hit as growth slows

26 OCT 2022

Google parent Alphabet’s Q3 revenue rose 6 per cent year-on-year to $69 billion compared to a 41 per cent increase a year ago, as the company posted a decline in online ad sales.

Net income came in at $13.9 billion compared to $18.9 billion a year ago.

Google’s advertising revenue was $54.5 billion compared to $53.1 billion last year. YouTube ad revenue was down close to 2 per cent to $7. billion from $7.2 billion.

Revenue from Google Cloud increased $6.8 billion during the quarter, from $5 billion a year earlier. Losses for the cloud sector increased to $699 million from $644 million.

Sharpening focus
Alphabet and Google CEO Sundar Pichai (pictured), stated on the earnings call the company was “sharpening our focus on a clear set of product and business priorities” while CFO Ruth Porat stated it was “working to realign resources to fuel our highest growth priorities”.

Pichai stated the company was developing AI to deliver a more natural and intuitive search experience.

“Our investments in AI and deep computer science mean that we can deliver a wide range of breakthroughs across our products and services to help people, businesses and communities,” he stated.

Google announced it new line of Pixel 7 smartphones and its first smartwatch on 7 October.

“We recently had our highest selling week ever for Pixel, and I’m really proud of the positive reviews so far,” Pichai stated.

Hiring slowdown
Porat noted Alphabet added 12,765 employees in Q3, including more than 2,600 that joined Google Cloud as part of its acquisition of cybersecurity firm Mandiant.

She stated headcount additions in Q4 would slow to less than half of the number of employees it added in Q3 but noted the company would continue hiring for critical roles, “particularly focused on top engineering and technical talent”.

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Mike Robuck

Mike Robuck is the U.S. Editor at Mobile World Live. He joined the Mobile World Live staff in February of 2022. Prior to joining GSMA, he was editor of FierceTelecom and of Light Reading’s Telco Transformation microsite. He has a...

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