The web giant has released its quarterly results. And if its turnover continues to increase, the profits, them, plunge from one year to another.
The economic crisis affects absolutely all structures, from small businesses to the behemoths of Silicon Valley.
Rising turnover, but slow growth
Google has just announced its results for the third quarter of 2022, and the figures presented are not as excellent as usual.
The Alphabet Group, which includes Google, YouTube and several other subsidiaries, posted revenue of $69.1 billion, up 6% from the same period the previous year, but which shows a real slowdown of the group’s growth.
Google’s advertising activity, which constitutes the heart of the reactor, alone garners 54.4 billion dollars, with an increase in revenues garnered by both advertising space on Google Search and the group’s other services. YouTube’s advertising business is eroding slightly, with $7.07 billion, compared to $7.2 billion in the same period in 2021.
Google sees its profits fall and will cut in its projects and its workforce to get through the crisis
If revenues remain in good shape for Alphabet, its profits are melting like snow in the sun, with 17.14 billion dollars this quarter, when the group reaped 21.03 billion dollars in profits a year earlier. The Google Services branch, which includes the advertising activity of the search engine, remains largely profitable. On the other hand, Google Cloud, despite an increase in its turnover of 2 billion dollars, presents a loss of nearly 700 million euros.
Alphabet’s “other bets” in healthcare and self-driving cars continue to cost it huge amounts of money, with a loss of $1.6 billion this quarter.
Google has previously announced that it wants to focus on its core activities to get through the crisis, and its CEO, Sundar Pichai, reaffirms this in the press release accompanying these results: “ We are refining our focus on a clear set of priorities, products and businesses. The product announcements we’ve made in the last month alone have made this very clear, including significant improvements to both AI-powered search and cloud, and new ways to monetize YouTube Shorts. Stadia’s hasty shutdown just a few weeks ago alone can attest to that.
Google, which employs 186,779 people worldwide, will also cut back on the number of hires this year and reorganize all of its teams. This should logically lead to a wave of layoffs among the workforce whose activity is put on hold or definitively cancelled.
Source : The Verge
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