Alphabet, Google’s parent firm, is losing money for the second quarter in a row, despite bringing in more. Alphabet earned roughly $16 billion in profit during the second quarter of 2022, down from $18.5 billion at the same time last year, according to the company’s Q2 2022 financial report released this afternoon.
As with the previous quarter, growing expenditures seem to have had a role; the corporation actually took in more revenue than it did in Q2 2021. Its sales were about $69.7 billion this quarter, up from $61.9 billion the previous year. However, compared to this time in 2021, Google is spending around $3 billion more on both R&D and sales and marketing.
The breakdown of how Google gained money is similar to last year. Google’s bread and butter are “Google Search & other” ads, which bring in over $40.7 billion. Google’s Cloud division generated over $6.2 billion in sales (but Google lost money on it altogether — approximately $858 million). YouTube advertising earned the firm around $7.3 billion. While this is a sizable figure, it is the weakest increase for Google’s video business in over two years. Google’s revenue increased in almost all of its sectors compared to Q2 2021.
Google has just warned staff that circumstances may be becoming harder. Google CEO Sundar Pichai sent a message in early July warning that the business is “not immune to economic headwinds” and that the company will “need to be more entrepreneurial, working with more urgency, sharper concentration, and more hunger than we’ve demonstrated on better days.” Just over a week later, the firm allegedly informed staff that it would be suspending recruiting for two weeks in order to “evaluate our numbers.”
