Google’s parent company, Alphabet Inc., reported its fourth-quarter earnings on Tuesday, February 1, 2023, revealing that its revenue fell short of analysts’ expectations. The company’s total revenue for the quarter was $76.05 billion, a 1% increase compared to the same period last year, but below the $76.53 billion that analysts had projected..
Despite missing revenue expectations, Alphabet’s earnings per share (EPS) exceeded analysts’ estimates. The company reported an EPS of $1.53, which was higher than the $1.28 that analysts had anticipated. This indicates that while Google’s overall revenue growth may have slowed down, the company remains profitable..
One of the main factors contributing to Google’s missed revenue expectations was a decline in advertising revenue. The company’s advertising revenue, which accounts for the majority of its income, grew by only 2.2% in the fourth quarter, down from a 6.9% growth rate in the previous quarter. This slowdown in advertising revenue growth is attributed to a decrease in spending by businesses due to economic uncertainties and the ongoing impact of the COVID-19 pandemic..
Despite the challenges faced in the fourth quarter, Google’s CEO, Sundar Pichai, expressed optimism about the company’s future prospects. He said, ‘Our long-term investments in deep computer science are helping us build incredibly powerful tools that are also incredibly useful. We’ll continue to invest thoughtfully in talent, infrastructure, and computing to deliver on our mission.’.
