Alphabet misses expectations for quarterly revenues

Google parent’s digital ad business struggled

Google-owner Alphabet on Thursday reported lower-than-expected quarterly revenue as the Google parent’s digital ad business struggled under an economic slowdown that has choked corporate spending and triggered mass lay-offs.

Shares of Alphabet, which lost roughly 40 per cent of their value in 2022, were down about 4 per cent in after-hours trading.

Revenue from Google advertising, which includes Search and YouTube, fell to $59.04 billion (€54.07 billion) from $61.24 billion, as advertisers – the biggest contributors to Alphabet’s sales – dialled back spending to cope with persistent inflation, high interest rates and recession fears.

Rival Meta Platforms on Wednesday had impressed investors with its quarterly results, promising to further slash costs and boost offerings to better capitalise on ad dollars.

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Alphabet’s net income fell to $13.62 billion, or $1.05 per share, from $20.64 billion, or $1.53 per share, a year earlier.

Revenue rose to $76.05 billion in the fourth quarter from $75.33 billion a year ago. Analysts were expecting $76.53 billion, according to IBES data from Refinitiv.

Advertisers, which contribute the bulk of Alphabet’s sales, pulled back on spending as rising inflation and interest rates fuelled concern over consumer spending. Consumers had flocked to the internet for everyday purchases during the height of the pandemic but have returned to in-person shopping as restrictions have eased.

Google’s overall advertising revenue slipped to $59.04 billion in the fourth quarter from $61.24 billion a year earlier.

Google employs some 5,000 people on a full-time basis in the Republic, engaging thousands more as contractors. – Reuters