Alphabet Revenue Slows in Q3

Google parent Alphabet’s revenue rose 6% year-on-year to $69 billion in the third quarter of 2022. In the same period last year, the company had a 41% increase.

Net income came in at $13.9 billion compared to $18.9 billion a year ago. Google’s advertising revenue was $54.5 billion compared to $53.1 billion last year. YouTube ad revenue was down close to 2% to $7. billion from $7.2 billion. Revenue from Google Cloud increased by $6.8 billion during the quarter, from $5 billion a year earlier. Losses for the cloud sector increased to $699 million from $644 million.

Alphabet and Google CEO Sundar Pichai said on the earnings call the company was sharpening its focus on a clear set of product and business priorities while CFO Ruth Porat stated it was working to realign resources to fuel our highest growth priorities. Pichai stated the company was developing AI to deliver a more natural and intuitive search experience. “Our investments in AI and deep computer science mean that we can deliver a wide range of breakthroughs across our products and services to help people, businesses, and communities,“ he said.

Porat noted Alphabet added 12,765 employees in Q3, including more than 2,600 that joined Google Cloud as part of its acquisition of cybersecurity firm Mandiant. She stated headcount additions in Q4 would slow to less than half of the number of employees it added in Q3 but noted the company would continue hiring for critical roles, particularly focused on top engineering and technical talent.