Alphabet, parent company of Google, published the financial results for the first quarter of its fiscal year 2022 and the group disappointed the markets a little. This is also felt at the level of the stock market with the action which has fallen.
Mixed results for Alphabet in the first quarter of 2022
Alphabet’s first-quarter revenue was $68.01 billion, up from $55.31 billion a year earlier, an increase of 23%. Analysts had expected a little better, namely $68.11 billion. In fact, this is the first time the group has reported sales below expectations since the start of the Covid-19 pandemic, as advertisers cut spending amid growing concerns about a global economic slowdown. .
Net profit was $16.44 billion, compared to $17.93 billion previously, a decrease of 8%. Earnings per share resort to 24.62 dollars, where analysts expected 25.91 dollars.
In detail, YouTube’s advertising revenue reached $6.87 billion (from $6 billion a year ago), while the cloud portion brought in $5.82 billion (from $4.05 billion in the first quarter of 2021).
Google’s other revenue — which includes products (smartphones, etc.), Play Store and non-advertising revenue from YouTube — brought in $6.82 billion, up from $6.49 billion in the same quarter of the year. last.
The “Other Bets” division, as Google points out, continues to lose money. However, it brought in $440 million in revenue, down from $198 million in the first quarter of 2021. But it lost $1.16 billion, down from $1.15 billion in the same quarter last year.
Following the release of financial results, Alphabet’s stock fell 2.55% post-trade to $2,312.50.