Alphabet reports weak earnings and revenue on big YouTube miss
PUBLISHED TUE, APR 26 20223:30 PM EDT
UPDATED 30 MIN AGO
Jennifer Elias @JENN_ELIAS
CNBC.com
KEY POINTS
-- Alphabet missed on top and bottom lines for the first quarter.
-- YouTube showed particularly weak results.
-- Other Bets, which includes self-driving car unit Waymo, nearly doubled its revenue compared to the year prior.
Alphabet reported weaker-than-expected earnings and revenue for the first quarter on Tuesday. The stock slid about 5% in extended trading.
Here are the results:
Earnings per share (EPS): $24.62 per share, vs. $25.91 expected, according to Refinitiv
Revenue: $68.01 billion, vs. $68.11 billion expected, according to Refinitiv
YouTube advertising revenue: $6.87 billion vs. $7.51 billion expected, according to StreetAccount
Google Cloud revenue: $5.82 billion vs. $5.76 billion expected, according to StreetAccount
Traffic acquisition costs (TAC): $11.99 billion vs. $11.69 billion expected, according to StreetAccount
Google’s revenue came in at $68.01 billion, growth of 23% from the same period last year. That’s a slowdown from 34% growth in the first quarter of 2021, when the economy was reopening from the pandemic.
The company reported $54.66 billion in advertising revenue for the quarter — up from $44.68 billion the year prior.
YouTube ad revenue for the quarter fell short of analyst expectations. The video site was a particular beneficiary of the pandemic, when users were primarily at home on their devices. The miss also comes as TikTok captures a growing share of the social media video market.
Google’s cloud business was a standout in the quarter, growing 44% and beating estimates as more big enterprises shift their workloads away from their own data centers. However, the cloud division is still losing money, reporting an operating loss of $931 million, compared to $974 million a year earlier.
During the quarter, Google halted much of its Russian operations due to the invasion of Ukraine. Revenue growth in the European region, which also includes the Middle East and Africa, slowed to 19% in the first quarter from 33% a year earlier.
Alphabet’s Other Bets, which includes its life sciences companies and self-driving car unit Waymo, nearly doubled revenue from the year prior, bringing in $440 million versus $198 million the year prior. The unit lost slightly more than the previous year with $1.15 billion.
Traffic Acquisition Costs (TAC), the metric used to show how much the company pays other websites to acquire traffic, came in higher than Wall Street expected at $11.99 billion.
Google’s other revenue segment, which includes hardware, Play Store, and non-advertising YouTube revenue, notched $6.81 billion, slightly higher than the prior year.
This is breaking news. Please check back for updates.
Alphabet reports weak earnings and revenue on big YouTube miss (cnbc.com) |
