Google’s parent company Alphabet announced its financial results for the first quarter of the year. The results obtained by Google are also important in terms of exceeding all estimates. Because it was thought that the company would not find what it was looking for in this quarter as its advertising revenues would decrease and it lagged behind in the field of artificial intelligence. But at least for this quarter, Google is smiling.smiling faces on google
Alphabet’s revenue rose 3% to $69.79 billion, compared to $68 billion a year ago, according to the report. The company has been stuck with single-digit growth over the past few quarters, after nearly two decades of consistent and rapid expansion. With recession fears mounting since last year, advertisers have begun to hurt Google, Facebook and others by reducing their online marketing budgets. Accordingly, the revenues of the companies did not grow at the desired rate. Meanwhile, Alphabet’s net income this quarter fell 8 percent to $15 billion.
While Google’s ad revenues decreased slightly to 54.55 billion dollars, YouTube ad revenues decreased in parallel to 6.7 billion dollars. Google’s Search and Other revenue rose $40.36 billion, slightly higher than $39.62 billion a year ago. Google Cloud revenues increased from $5.8 billion to $7.45 billion. It competes with Google, Amazon and Microsoft in this space and has announced profits in its cloud business for the first time. Google Cloud recorded operating income of $191 million this quarter, after a loss of $706 million a year earlier.
Meanwhile, Google had previously stated that from the first quarter, its artificial intelligence subsidiary DeepMind will no longer be reported openly, but will be reported as part of Alphabet’s corporate costs. Google currently holds more than 90 percent of the search market share. Pichai assured investors that Google will continue to improve search and that they are ready to compete.
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