San Francisco (The Hawk): In the third quarter (Q3), Alphabet, the parent company of Google, reported net income of $13.9 billion, a decrease of 27% from the same period in the previous year, while revenue rose by 6% to $69.1 billion.
Alphabet's earnings of $16.9 billion in net profit fell short of Wall Street expectations.
The tech giant made profits of about $16 billion and revenue of almost $69.7 billion in the second quarter (Q2).
Alphabet and Google CEO Sundar Pichai stated, "We are sharpening our focus on a clear set of product and business priorities."
"Product announcements we've made in just the past month alone have shown that very clearly," Pichai said in a statement late on Tuesday. "These include significant improvements to both Search and Cloud, powered by AI, and new ways to monetize YouTube Shorts."
The third quarter's financial results, which were impacted by foreign exchange, reflect solid fundamental growth in Search and momentum in Cloud, according to Ruth Porat, CFO of Alphabet and Google.
Porat continued, "We're working to realign resources to support our highest growth priorities.
To $39.5 billion, Google Search ad sales increased by 4%.
Google Cloud increased from $4.9 billion in Q3 2021 to nearly $6.9 billion in Q3 2022, and advertising brought in $54.4 billion, up from $53.1 billion. In Q3, YouTube ad revenue was slightly down.
According to Pichai, the business has begun the process of increasing efficiency by reallocating resources to capitalise on its most promising growth prospects.
"We have made a number of shifts over the past quarter away from lower priority initiatives to support higher growth priorities. We will add fewer employees in Q4 than we did in Q3. And as we make plans for 2023, we'll continue to make crucial trade-offs where necessary and are committed to containing the growth of operating expenses "said he.
(Inputs from Agencies)
