Google’s parent company, Alphabet, has missed out on its earnings and revenue for the second quarter.
The company’s earnings per share was at $1.21 instead of the $1.28 predicted by Refinitiv and recorded revenue came in at $69.69 billion compared to the $69.9 billion expected.
Advertising revenue from its video-sharing platform YouTube came in was recorded at $7.34 billion vs. $7.52 billion expected, according to StreetAccount.
Cloud revenue was at $6.28 billion vs the $6.41 billion that was expected.
Revenue growth declined to 13% in the quarter from 62% a year earlier when the tech firm was benefitting from the post-pandemic reopening.
Alphabet CFO Ruth Porat told CNBC described the current outlook as one of “uncertainty in the global economic environment.”
Ad revenue rise by 12% to $56.3 billion as marketers reeled in spending to combat rising inflation.
YouTube is suffering as a result of the increased popularity in rival video-sharing platform TikTok.
Google’s Search and Other revenue was $40.69 billion, up from $35.85 billion year-on-year, the report showed. This was boosted by travel and retail searches, according to the company’s chief business officer Philipp Schindler.
Alphabet claimed its headcount rose 21% to 174,014 full-time employees from 144,056 the year before.
The tech giant did confirm however that it would slow down the pace of hiring and investments through 2023 as a result of economic headwinds.
“Going forward, the very strong revenue performance last year continues to create tough comps that will weigh on year on year growth rates of advertising revenues for the remainder of the year,” Porat said on the call with CNBC.
The company didn’t provide a revenue forecast, but analysts expect growth for the year of around 14% to $293.9 billion, according to Refinitiv. Alphabet shares have lost about a quarter of their value this year.
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