What you need to know
- Alphabet announced first quarter earnings for 2022.
- The company brought in more than $68 billion in revenue with increased revenue in most areas, including hardware.
- Growth has slowed when compared to the same period last year.
Google’s parent company, Alphabet, has announced its first-quarter earnings for 2022. The company managed to make more than $68 billion in revenue, down from $75 billion in the previous quarter but up 25% year-over-year.
The biggest driver, of course, was Google’s ad business, with Search bringing in nearly $40 billion in revenue and YouTube ads accounting for nearly $7 billion. Still, YouTube revenue fell short compared to analyst expectations of $7.5 billion (via CNBC), likely due to competing streaming apps like TikTok growing in popularity. Google Cloud also increased its revenue year-over-year as the company focuses on scaling its business, although it still operates at a loss, albeit slightly a narrower one.“Q1 saw strong growth in Search and Cloud, in particular, which are both helping people and businesses as the digital transformation continues,” said Alphabet CEO Sundar Pichai in a statement. “We’ll keep investing in great products and services, and creating opportunities for partners and local communities around the world.”
The company does not typically announce Pixel sales, lumping them into its “other” category with other hardware, apps, and subscriptions. Revenue in this category did not quite reach that of the previous quarter when Google boasted “record Pixel sales” following the launch of the Pixel 6 series, and also missed the expected $7.3 billion mark. However, there was still some improvement when compared to the same period last year as Pixel devices remain some of the best Android phones on the market and the first to gain access to the new Android 13 beta.