Alphabet Q2 Earnings Report 2023


Alphabet Q2FY23: The Stock Surged by 7% driven by Robust Quarterly Results

Google's Parent company Alphabet reported Q2FY23 revenue of $74.6 billion as compared to $69.7 billion same period last year. It increased by 7% YoY. (Source: Alphabet)

Google ad revenues totaled $58.14 billion as compared to $56.29 billion on a YoY basis, up by 3.3%. YouTube ads stood at $7.67 billion, up from $7.34 billion the year before. The video platforms have faced significant competition from TikTok in short-form videos. Moreover, The company's “Google search and other” revenue rose to $42.63 billion, up slightly from last year's $40.68 billion. (Source: Alphabet)

Furthermore, The company's cloud unit grew by 27.96%. The cloud division of Google turned profitable on an operating basis in the first quarter, posting operating income in Q2 of $395 million after losing $590 million a year earlier. (Source: Alphabet)

Under other bets, the company reported a 48% increase in revenue to $285 million. However, the segment still reported a loss of $813 million in the period. The other bets of the company include the Waymo self-driving car business and the Verily life sciences unit. (Source: Alphabet)

Alphabet's Net Income rose by 14.8% from $16 billion in Q2FY22, or $1.21 per share to $18.37 billion, or $1.44 per share in Q2FY23. (Source: Alphabet)

The company's total operating income came at $21.8 billion for the quarter as compared to $19.4 billion same period last year. (Source: Alphabet)

Apart from this, current CFO Ruth Porat who's Google and Alphabet's longest-tenured CFO to date,  will start in her new role of Chief Investment Officer and President on September 1, also retaining her role as CFO. Ruth Porat will continue reporting to Pichai. (Source: CNBC)

On the AI front,

Alphabet rolled out various Artificial Intelligence products at its annual I/O developer conference in May this year and it revamped its search engine to include generative AI.

Porat in the earnings con call said that the new AI technology comes at a cost, the largest component of the company's Q2 capital spending was for servers and a "meaningful investment" in AI computing.

Alphabet's CEO Sundar Pichai mentioned advertising is coming to the company's revamped search. The company is testing which formats are effective and where to place ads inside of its AI-powered search. (Source: CNBC)

Chief Business Officer Philipp Schindler said on the call that at present, 80% of advertisers use at least one AI-driven search product,

Alphabet plans to integrate generative AI into other products such as Google Photos, Gmail, and its Android mobile operating system. Moreover, generative AI tech can create text, images, and videos that resemble what people produce.

The stock surged by 7% in extended trading on July 25th. (Source: CNBC)

Visit Us: graniteshares

Capital at Risk | For Sophisticated investors only


#AlphabetEarnings #GoogleEarnings #AlphabetQuarterlyResults #TechEarnings #StockMarket #Finance #EarningsReport #CorporateEarnings #FinancialResults #Investing #Alphabet #GOOG #GOOGL #GoogleStock #TechStocks #StockMarket #Investing #AlphabetInvestors #TechInvesting