The Californian group also reported an 11% increase in its turnover, to $76.7 billion. Despite this, Alphabet’s cloud computing division missed third-quarter revenue estimates.
Google failed to meet its goals for the “cloud” and its shares sink 7% in the aftermarket
Google recorded US$19.7 billion net profit in the third quarter, a jump of 42% over the same period last year. Despite this, Alphabet’s cloud computing division missed third-quarter revenue estimatesas economic uncertainty and high interest rates forced companies to cut their budgets, according to their results presented on Tuesday.
The Californian group also reported an increase of 11% in its turnover$76.7 billion, according to its earnings release released Tuesday after the Wall Street close.
Fear of a slowdown in the global economy forced companies to curb spending on cloud-related servicesincluding expensive artificial intelligence tools, causing Google’s cloud unit’s revenue growth to slow to 22.5% in the third quarter, compared with 28% in the previous quarter .
The company reported advertising revenue of US$59.65 billion in the third quarter, compared to US$54.48 billion the previous year. Its net profit in the July-September period was US$19.69 billion, compared to US$13.91 billion a year earlier.
Revenue for the quarter ended September 30 was $76.69 billion, compared to estimates of $75.97 billion, according to LSEG data.
Source: Ambito
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