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Google reported earnings last night and their ad revenue not only slowed but was technically lower year over year. Google's ad revenue was down about 3.6%, while total revenue was up just around 1%.
Here is the snippet from the earnings report showing that:
Remember, Microsoft reported earnings the week prior and showed slowed growth but still growth. Microsoft Bing Ads grew 10% last quarter.
Here is a look at Google's earnings numbers for the past 3 years:
You can see that Q4 2021 was higher than Q4 2022!
Ruth Porat, CFO of Alphabet and Google, said: “Our Q4 consolidated revenues were $76 billion, up 1% year over year, or up 7% in constant currency, and $283 billion for the full year 2022, up 10%, or up 14% in constant currency. We have significant work underway to improve all aspects of our cost structure, in support of our investments in our highest growth priorities to deliver long-term, profitable growth.”
Hence the mass Google layoffs to cut costs and increase profit. Keep in mind, Google's profit was insane - $18 billion, that is $1 billion in profit per week! Sure, Google's net income was down 34% year over year, so I get Wall Street.
Forum discussion at Twitter.
