The slowdown experienced by technology giants in the face of high inflation and component shortages began to be clearly reflected in the financial statements. Google umbrella firm Alphabet also failed to meet expectations.
Alphabet second quarter chart
As of the second quarter of the year, Alphabet’s total revenues stood at $69.69 billion, with 13 percent growth. Last year, growth figures of over 50 percent were coming. The rise of the dollar especially affected revenues in this period. Again, due to inflation, the advertisers’ review of their spending slowed the growth.
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The firm’s advertising revenues grew 12 percent to $56.3 billion. YouTube revenues, on the other hand, grew only 5%, with $7.34 billion. In particular, the aggressiveness of TikTok negatively affects revenues. The cost of purchasing traffic to be the default search engine in browsers and applications, especially Apple, amounted to 12.21 billion dollars.
Search-based revenues, on the other hand, grew 15 percent to $40.69 billion. Travel and retail searches brought a lot of smiles during this period. The Other segment, which includes projects such as Waymo, received $193 million in revenue, but saw an operating loss of $1.69 billion. The Google Cloud cloud unit also failed to meet expectations with $858 million in revenue.
Alphabet, whose workforce grew by 21 percent with 174 thousand people, is worried about the increase in costs. That’s why it plans to slow hiring throughout 2023. The revenue expectation for the year 2022 is 293.9 billion dollars.
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